Fixed IncomeDefault Risk Premium (DRP) Red Herring T-Bill (Treasury Bill) Rate Of Return Risk Neutrality Prospectus
Discount Bond
A bond that is sold at a price lower than its face value is known as a discount bond. This typically occurs when the market interest rate is higher than the bond's coupon rate, making it less attractive to investors. Discount bonds can offer potential gains through capital appreciation if the bond's market value increases over time. However, they also carry the risk of a potential loss if the bond is sold before maturity. Therefore, it's important for investors to carefully consider the potential risks and rewards before investing in discount bonds.
Related terms
Understand the meaning and definition of Default Risk Premium (DRP) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Red Herring in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of T-Bill (Treasury Bill) in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Rate Of Return in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Risk Neutrality in the context of stock market, trading, and investments.
MOREUnderstand the meaning and definition of Prospectus in the context of stock market, trading, and investments.
MORE
Explore other categories
10 Cr+DOWNLOADS
Enjoy Zero Brokerage On Stock Investments
Get the link to download the App
