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Bank discount basis |
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Bank discount basisA convention used for quoting bids and offers for Treasury bills in terms of annualized yield, based on a 360-day year.Bank discount basis Similar MatchesStepped discount mortgageStepped discount mortgageWhere the discount is, for example, fixed at one level for one year and then a slightly lesser level for two further years. Remember it is the percentage discount that is stepped and not the monetary amount, so your repayment can still vary. Forward discountForward discountOpposite of forward premium. 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. Discount rateDiscount rate1. The rate, per year, at which future values are diminished to make them comparable to values in the present. Can be either subjective (reflecting personal time preference) or objective (a market interest rate). 2. The interest rate that the Fed charges commercial banks for very short-term loans of reserves. One of the tools of monetary policy. Deep discount bondDeep discount bondA bond issued with a very low coupon or no coupon that sell at a price far below par value. A bond that has no coupon is called a zero-coupon bond. Further SuggestionsUnamortized bond discountDiscount period Discounting Accrued discount discount yield Discount payment Discounted payback Dividend Discount Model (DDM) discount rate Discounted dividend model (DDM) discounted cashflow Volume discount Original issue discount debt (OID debt) Risk adjusted discount rate Discount yield Discount window Discount Discount broker Discounted cash flow (DCF) Discount period Accretion (of a discount) Discount securities Average discount rate dividend discount model Rediscount |
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