Discount note: note (i. e. short - or medium-term bond) issued at a discount from its face value.

Deep discount bond note: bond with relatively low-coupon rate of interest offered with a discount in excess of what can normally be treated as capital gain by the investor.

The author pointed out that the legal nature of note discount should be the two parties' legal act of bill right transfer by analyzing defects of "the loan doctrine" and "the note act doctrine".