Introduction of the term Deep discount bonds
Give a brief introduction of the term Deep discount bonds?
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It is also been described above in the zero coupon bonds however this type of bond is employed to sell in discount from par value. In this the bond that is selling at a discount from par value has fewer rates of securities and fixed income then other bonds and it as well has risk profile. This also holds the market price of twenty percent or more however it is under its face value. They are a bit riskier than other comparable bonds. They are as well named as low-coupon bonds and are employed in long term.
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