bond discount

bond discount is the excess of a bond face value over issued price.

Bond discount is the difference when a bond is issued below its face value. The discount is amortized over the bond term, increasing interest expense under effective interest method.

- Used in capital markets for disclosure, valuation, and investor communication.
- Used when interpreting securities, filings, and market indicators.

- Example: Investors reference **bond discount** when assessing risk/return and interpreting public disclosures.

- Why it matters: Improves transparency for investors and supports pricing, funding, and governance decisions.