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Bill, Financial Advisor
Category: Finance
Satisfied Customers: 3153
Experience:  EA, CEBS - 35 years experience providing financial advice
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If bonds are issued at a discount, it means that the

Customer Question

If bonds are issued at a discount, it means that the
Submitted: 8 years ago.
Category: Finance
Expert:  Bill replied 8 years ago.
It means the bonds were issued below the par or face value of the bond. The difference between the price issued and the price at maturity is referred to as original issue discount (OID). This difference is considered interest.