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What is oid original issue discount

From the perspective of the holder, an OID bond offers higher what profits with a lesser investment involved.
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Selling long-maturity, low-coupon or zero-coupon bonds at a discount solves this problem.
Glossary, o Original issue discount (OID original issue discount (OID what is an original issue discount?
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The rules for calculating the what original issue discount utilize a compounding interest formula, with the principal recalculated every six months.
Your basis in the debt instrument is increased by the OID you include in income.
Interest expense cash interest (SE ).