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    pure discount bond and bond that trades at a discount

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    What is the difference between a pure discount bond and a bond that trades at a discount?
    Give me an example.

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    https://brainmass.com/business/bond-valuation/pure-discount-bond-bond-trades-discount-421388

    Solution Preview

    When a bond is said to be a discount bond, this means that its current price is less than the par value.

    For example, if a bond matures in 2 years and when it matures it pays the investors $100, and this only is currently selling for $99, then it is a discount bond.

    A bond trading at discount means that its ...

    Solution Summary

    This solution explains the difference between a pure discount bond and a bond that trades at a discount

    $2.19

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