When price of bond is calculated below its par value, it is classified as

When price of bond is calculated below its par value, it is classified as Correct Answer discount bond

When price of bond is calculated below its par value, it is classified as discount bond. A discount bond is a bond that is issued for less than its par or face value. Discount bonds may also be a bond currently trading for less than its face value in the secondary market. A bond is considered a deep-discount bond if it is sold at a significantly lower price than par value, usually at 20% or more.
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