what is an original issue discount oid 
an original issue discount oid is the discount in price from a bond s face value at the time a bond or other debt instrument is first issued bonds can be issued at a price lower than their face value known as a discount the oid is the amount of discount or the difference between the original face value and the price paid for the bond original issue discounts are used by bond issuers to attract buyers to purchase their bonds so that the issuers can raise funds for their business many zero coupon bonds use large oids to entice buyers to their products 