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

LohaHridoy
  1. classified bond
  2. discount bond
  3. compound bond
  4. consideration earning

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Answer: Option 2

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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