Deep-discount Bond

Deep-discount Bond means:
a bond selling for a discount of more than about 25% from its face value. Unlike original issue discount bonds, deep-discount bonds were issued at a par value of $1,000, but market forces caused a decline. Gain on the sale of a bond purchased at a deep discount is generally taxed as a capital gain.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.