Market Discount Bond

Market Discount Bond

Market Discount Bond means:
bond selling below face value at a time after its issuance. A Market discount is the difference between what the taxpayer pay for a bond and its higher face value. The tax treatment varies depending on whether the bond is taxable or tax-free and whether you redeem it at maturity or sell it before that time.

See also other Tax Terms and Definitions in U.S.A.

discount bond; contrast with the entry with original issue discount (OID).


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