A security issued at a price well below its face value (either more than 15% in total or at a discount of more than 0.5% per annum). It will therefore have a low coupon (www.practicallaw.com/A34761). Much, if not all of the return to the investor will be in the form of payment of the principal amount of the bond (www.practicallaw.com/A35931) at redemption when the bond is redeemed at its full value.