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A zero-coupon bond is a another example of a discount bond. Depending on the length of time until maturity, zero-coupon bonds can be issued at substantial discounts to par, sometimes 20% or more.
But, some bonds trade at a lower value. Bonds that fall into this category are called discount bonds. For example, a bond with a $1,000 face value that's currently selling for $95 would be a ...
I write about department stores; past and present. 1962 was the year of the discount department store. Although there are examples of discount houses that predated that year, especially in the ...
How much you discount it by can vary. You could, for example, use a "risk-free" rate of return, such as the yield on a U.S. Government Treasury Bill. Or, you could use Weighted Average Cost of ...
Here is a typical example of discount capture. You buy a closed-end fund at a discount of 15%. The net asset value is $100, and you buy the fund for $85. Suppose the overall market goes up 10% ...