The bond fell as much as 4%, or as low as 96, from its face value at par.

WSJ: Perpetual Bond Risk Rises With US Treasury Yields

The electorate hesitates to accept flat taxes and the like at face value: Steve Forbes, flat-taxer par excellence, got nowhere in his bid for the presidency in 1996, while Bob Dole's proposal for a 15% cut in tax rates was ridiculed.

ECONOMIST: And for his next trick

Say the rate on the Spanish bond was 5% and Corzine was able to purchase at a 10% discount to par (100) or 90% of face value.

FORBES: Jon Corzine: Criminal Or Just Plain Old-Fashioned Stupid?