Definitions for "discount bond"
A bond that sells at value below par value.
A bond with a market value lower than par; occurs when market rates are greater than the coupon rate.
One that sells at a current market price that is less than its face value. Bonds sell at a discount when the coupon on the bond is lower than prevailing rates. For example, you might have to pay only $812 for a bond with a 6.5% coupon if new issues yielding 8% are available for $1,000.
Outside of the traditional, rather obvious laymen definition - Discount also...
Keywords:  dutch, auction, duration
duration Dutch auction