Original issue discount bond
Original issue discount bond (alternatively known as OID bond) is, in general, any bond originally offered at a price that is significantly below its par value.
Definitions
According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),
- Original issue discount bond (OID bond). In general, any bond originally offered at a price that is significantly below its par value.
According to Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition),
- Original issue discount bond (OID bond). Any bond originally offered at a price below its par value.
Related concepts
- Financial management. A combination of enterprise efforts undertaken in order to procure and utilize monetary resources of the enterprise.
