Die Heuning Pot Literature Guide
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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Original Issue Discount

Definition:

Bonds are usually issued so that the investor pays the face value. If an issuer is not paying interest on the bond, such as with a zero-coupon bond, then the issuer will have to reduce the upfront amount it receives. The difference between the face, or par value, and the amount received is the Original Issue Discount.

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