Instance when interest rates go up and the value of bonds in secondary markets drop. The price of redeeming a mature bond in market discount is the difference between its par face value and the price of the market that is below par.
Related information about market discount:
- Market Discount Definition | Investopedia
The difference between the face value of a bond issued at par and the current below-par market price, plus any original issue discount. Market discounts occur ...
- Accrued Market Discount Definition | Investopedia
The gain in the value of a discount bond expected from holding it for any duration until its maturity. Because discount bonds are sold below face value, it is ...
- Taxes and Market Discount on Tax-Exempts
Market discount generally exists when a bond is purchased on the secondary ... Market discount is the difference between the purchase price of a bond and its ...
- Publication 1212 (12/2011), Guide to Original Issue Discount (OID ...
Market discount. Market discount arises when a debt instrument purchased in the secondary market has decreased in value since its issue date, generally ...
- 26 USC § 1276 - Disposition gain representing accrued market ...
For purposes of paragraph (1), a person disposing of any market discount bond ... Any partial principal payment on a market discount bond shall be included in ...
- Accrued Market Discount Definition & Example | InvestingAnswers
We explain the definition of Accrued Market Discount, provide a clear example of how it works and explain why it's an important concept in business, finance ...
- What is accrued market discount? definition and meaning
Definition of accrued market discount: An increase in the market price of a discounted bond resulting from an approaching maturity date, rather than from ...
- Original Issue Discount
Investors that do not accrue market discount must recognize the accrued ... The recognition of market discount may be deferred until sale or redemption (full or ...