### Question
Can you define what market discount bond means?


### Answer
**Market discount bond** is defined as the following in *26 U.S.C. § 1278*:

> any bond having market discount

#### Citation:
  - *26 U.S.C. § 1278*
  - Heading: **Subtitle A-Income Taxes > CHAPTER 1-NORMAL TAXES AND SURTAXES > Subchapter P-Capital Gains and Losses > PART V-SPECIAL RULES FOR BONDS AND OTHER DEBT INSTRUMENTS > Subpart B-Market Discount on Bonds**

