taxmap/pubs/p550-003.htm#en_us_publink10009982Discount on Debt Instruments(p13)Discount on Debt InstrumentsWords you may need to know (see Glossary) Market discount Market discount bond Original issue discount (OID) PremiumIn general, a 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 w