The Original Issue Discount (OID) is the difference between the original face value and the actual price paid for a bond or other debt instrument.

What is the original issue discount of OID? The original issue discount (OID) is the difference between the bond`s face value and its lower issuance price, which represents the interest that will be earned over the life of the bond.

What is OID in debt pricing? OID in debt pricing refers to the reduction in the bond`s issuance price below its face value, which effectively increases the yield to the investor as the bond matures.

What is the difference between OID and market discount? OID is the discount from face value at the time of issuance, while market discount occurs when a bond is purchased in the secondary market at a price lower than its face value.

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OID provides investors with an additional return through the discount, potentially offering tax advantages and increasing the bond`s yield.

Original Issue Discount (OID) is the difference between a bond`s face value and its issuance price, providing implied interest and potentially enhancing the bond`s yield.