What is a discount bond?
When a company issues a bond, it's generally priced at what is known as par value, usually $100. Investors in the bond receive regular interest payments based on the bond's coupon rate, and the par value is repaid to the investor when the bond matures.
After a bond is issued, similar to a stock, it can be traded. If market interest rates change, the trading price of a bond can also change.
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