The difference by which a bond's market price is lower than its face value. The antithesis of a bond premium, which prevails when the market price of a bond is higher than its face value. Bloomberg Financial Dictionary
See: original issue discount securities. Bloomberg Financial Dictionary
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bond discount UK US noun [C] FINANCE
► the difference between the value of a bond at a particular time and its higher value when it is paid back on the agreed date
Financial and business terms. 2012.