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Table 1. Explanation of Section I Column Headings

Daily OID per $1,000

of Maturity Value

Issue Price

Annual

Total

for Each Accrural Period

OID per

(Percent of

Stated

OID

$1,000 of Maturity Value

Name of

CUSIP

Issue

Maturity

Principa

Interest

2002 1st

2002 2nd &

2003 2nd

for Calendar Year

Issuer

Number

Date

Amount)

Rate

1/1/02

Period

2003 1st

Period

2002

2003

XYZ Corp

123456AA

08/01/84

08/01/04

90.0

13.0

68.47

.028399

.032534

.037270

11.00

12.60

1. CUSIP Number — The CUSIP number identifies the debt

same month and day as the date of issue of the instrument. In the

instrument. The first six digits of the CUSIP number represent

above example, the first accrual period shown for 2002 for XYZ

the issuer and the last two digits identify the particular issue. The

bond is 8/1/01-7/31/02. The part of this accrual period that falls in

ninth, or check digit, is omitted for most debt instruments issued

2002 is from 1/1/02-7/31/02. For each $1,000 principal amount of

before 1985.

the bond, the OID is .028399 each day you held the bond during

this accrual period. Similarly, the part of the second accrual period

2. Issue Date — This is the date of original issue, which is generally

in 2002 is from 8/1/02-12/31/02. The OID is .032534 for each day

the date on which the instrument was first sold to the public at

you held the bond during this accrual period. The OID for each day

the issue price.

you held a debt instrument in 2003 is determined in the same

3. Maturity Date — This is the date the debt instrument matures

manner, using the daily OID applicable to the part of each accrual

and is redeemable at its full principal amount. For example, if the

period falling in 2003. If you bought the debt instrument after

bond of XYZ Corp. above has a principal amount of $1,000, the

original issue and paid an acquisition premium, see Debt

holder will be paid $1,000 when he or she redeems it on August

Instruments Issued After July 1, 1982, and Before 1985, earlier, for

1, 2004 (maturity date).

more information.

4. Issue Price (Percent of Principal Amount) — In general, the

NOTE. For corporate debt instruments issued after 1984 (listed in

issue price is the initial offering price at which a substantial

Section I – B), the columns for the daily OID amounts are increased

amount of the debt instruments are sold to the public. In the

to include the number of 6-month accrual periods that apply to

above example, XYZ bonds were first offered to the public at

these instruments during 2002 and 2003. The 2002 OID is

$900. Since they have a principal amount of $1,000, the issue

determined by using the daily OID for the 3 periods for the year.

price expressed as a percent of principal amount is 90.

Although each accrual period is 6 months long, a 6-month period

may extend into the next calendar year.

5. Annual Stated Interest Rate — This is the rate of annual

8. OID for 2002 and 2003 (Per $1,000 of Maturity Value) — The

interest payments. In the above example, XYZ bond has a

amount appearing in the 2002 column is the total OID if you held

stated interest rate of 13% and pays $130 a year for each $1,000

the instrument the entire year or the part it was outstanding. For

principal amount of the bond.

debt instruments entirely called or maturing in 2002, the amount is

computed to the date of call or maturity. In the above example, if

6. Total OID to 1/1/02 — This shows the total OID accumulated on

you held XYZ bond for all of 2002, the OID is $11.00 for each

the debt instrument from the date of original issue to 1/1/02.

$1,000 principal amount of the bond. If you did not hold the bond

(This information is not available for all instruments listed.)

for the entire year, use the daily OID for each accrual period in

7. Daily OID in 2002 and 2003 — This is the OID for each day you

2002. (See Figuring OID, earlier, for more detailed information.)

held the debt instrument during the accrual periods falling in

Similarly, the amount appearing in the 2003 column is the total OID

2002 and 2003. (The daily OID for the second accrual period in

if you held the instrument for the entire year or the part it was

2002 and the first accrual period in 2003 are identical.) For

outstanding. If you bought the instrument after original issue and

corporate debt instruments issued after July 1, 1982, and before

paid an acquisition premium, see Debt Instruments Issued After

1985, an accrual period is a 1-year period beginning on the

July 1, 1982, and Before 1985, earlier, for more information.

Page 16

Publication 1212 - List Of Original Issue Discount Instruments - Department Of Treasury - 2002 Page 16

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