deep discount security/deep discount bond
A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon. Much, if not all of the return to the investor will be in the form of payment of the principal amount of the bond at redemption when the bond is redeemed at its full value.
Related links
Practical Law Dictionary. Glossary of UK, US and international legal terms. www.practicallaw.com. 2010.