Discount Bond definition

Discount Bond means any Bond which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 10.02(a).

Split View

AI-Powered Contracts

Draft, Review & Redline at the Speed of AI

Get StartedSchedule a Demo

Discount Bond means any Bond which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 10.02. “Interest” with respect to a Discount Bond means interest, if any, borne by such Bond at a Stated Interest Rate.

Discount Bond means any Bond which provides for an amount less than the principal amount thereof to be due and payable upon a declaration of acceleration of the Maturity thereof pursuant to Section 10.02. "Interest" with respect to a Discount Bond means interest, if any, borne by such Bond at a Stated Interest Rate.

Examples of Discount Bond in a sentence

• If the Notional Bond Portfolio comprises Notional Discount Bonds, the value of one bond unit will equal the value of one Notional Discount Bond.

• Proceeds received from the sale, exchange, redemption or payment of a Discount Bond in excess of the holder’s adjusted basis (as increased by the amount of original issue discount that has accrued and is treated as tax-exempt interest in such holder’s hands), will be treated as gain from the sale or exchange of such Discount Bond and not as interest.

• Office : 0422 – 2312416 Mobile: ▇▇▇▇▇▇▇▇▇▇ ▇▇▇.▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇.▇▇▇ E-mail: ▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇▇@▇▇▇▇▇.▇▇▇ Discount Bond: A bond selling below par, as interest in-lieu to the bondholders.

• If the amount allocated to the 2004-1 Income 10 Buy-Write Index Portfolio is zero, each bond unit will comprise one "Notional Discount Bond" that: (i) is denominated in U.S. dollars; (ii) has a redemption amount equal to $1.00; (iii) matures on the fifth Index Business Day prior to the Stated Maturity Date; and (iv) pays a coupon at a rate equal to 1.50% per annum daily, calculated on the basis of a 365-day year.

• The amount of original issue discount so accrued in a particular accrual period will be considered to be received ratably on each day of the accrual period, will be excluded from gross income for federal income tax purposes, and will increase the holder’s basis in such Discount Bond.

• Under existing law, an appropriate portion of any original issue discount, depending in part on the period a Discount Bond is held by the purchaser thereof, will be treated for federal income tax purposes as interest that is excludable from gross income rather than as taxable gain.

• If the amount allocated to the 2004-1 Income 10 Buy-Write Index Portfolio is zero, each bond unit will comprise one "Notional Discount Bond" that: (i) is denominated in U.S. dollars; (ii) has a redemption amount equal to $1.00; (iii) matures on the fifth Index Business Day prior to the Stated Maturity Date; and (iv) pays a coupon at a rate equal to 1.405% per annum daily, calculated on the basis of a 365-day year.

• The original issue discount is the excess of the stated redemption price at maturity of such a Discount Bond over the initial offering price to the public (excluding underwriters and other intermediaries) at which price a substantial amount of that maturity of the Discount Bonds was sold.

• If the amount allocated to the 2004-1 Income 10 Buy-Write Index Portfolio is zero, each bond unit will comprise one "Notional Discount Bond" that: (i) is denominated in U.S. dollars; (ii) has a redemption amount equal to $1.00; (iii) matures on the fifth Index Business Day prior to the Stated Maturity Date; and (iv) pays a coupon at a rate equal to 1.465% per annum daily, calculated on the basis of a 365-day year.

More Definitions of Discount Bond

Discount Bond means, except as otherwise stated in a Series Supplemental Indenture, any Bond or Bonds offered for sale to the public or sold to the initial purchaser thereof at the time of sale thereof by the Authority at an initial reoffering price or initial principal amount of less than ninety-seven percent (97%) of the principal amount at maturity thereof, without reduction to reflect underwriter’s discount or placement agent’s fees.

Discount Bond means any collateralized 30-year discount bond issued by the Borrower under the Financing Plan.

Discount Bond. A bond selling below par, as interest in-lieu to the bondholders.

Discount Bond means any Bond pursuant to the terms of which an amount less than the principal amount thereof may be due and payable upon a declaration of acceleration of the Maturity thereof.

Discount Bond means, except as otherwise stated in a Series Supplemental Indenture, any Bond or Bonds offered for sale to the public or sold to the initial purchaser thereof at the time of sale thereof by the Authority at an initial reoffering price or initial principal amount of less than ninety-seven percent (97%) of the principal amount at maturity thereof, without reduction to reflect underwriter’s discount or placement agent’s fees.