taxmap/pubs/p550-003.htm#en_us_publink10009982Discount onDebt Instruments(p13) Discounted Debt Instruments Words you may need to know (see Glossary)Market discountMarket discount bondOriginal issue discount (OID)PremiumA debt instrument, such as a bond, note, debenture, or other evidence of indebtedness, that bears no interest or bears interest at a lower than current market rate will usually be i