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Accrued market discount |
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Accrued market discountThe rise in the market value of a discount bond as it approaches maturity (when it is redeemable at par) and not because of falling market interest rates.Accrued market discount Similar MatchesDeep discountDeep discountIn the context of a rights issue, the issue of shares at a price much lower than the current trading price.In most rights issues, the new shares are priced at 10-15 per cent below the current price which is thought to be enough to ensure that existing shareholders take up the rights and buy the new shares.With a deep discount rights issue, the discount can be anything up to 50%. In August 2000 the media company Pearson announced a £1.7bn rights issue to pay for a US acquisition and priced it at a substantial discount. The reasoning was that for a rights issue of this size, and in volatile markets, the discount was necessary to ensure its success. Also, the company is estimated to have saved about £27m in underwriting fees. Discount rateDiscount rateThe interest rate at which the US Federal Reserve lends money to member banks. Discount PointsDiscount PointsThe fee associated with the note rate for your loan, the more discount points you pay the lower the rate you can buy, the fewer you pay, the higher your rate. If the rate is high enough, the loan is priced above par and these premium points are available to pay closing costs creating a no or low fee loan. DiscountDiscountThe difference between the net asset value (NAV) per share of an investment trust and the share price, expressed as a percentage of the net asset value per share.e.g. if the NAV is £3.00, and the share price of the trust is £2.70, the trust is trading at a 10% discount to its NAV.When the share price is above the net asset value, it is said to be trading at a premium. Volume discountVolume discountA reduction in price based on the purchase of a large quantity. Further SuggestionsDiscountDividend Discount Model (DDM) Deep discount bond Bank discount basis Discount Interest discounted cashflow Original issue discount debt (OID debt) Discounted dividend model (DDM) Stepped discount mortgage Documented discount notes Rediscount Underwriters discount Discount window Average discount rate Straight Discount Discount period dividend discount model bond discount Discounted in or by market Discount securities Unamortized bond discount discounted rate mortgage Discounted payback period rule Pure discount bond Accrued discount |
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