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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 MatchesDiscount InterestDiscount InterestInterest at a beginning of the loan. For example if you take out a one-year loan of $100 at a discount interest rate of 10%, you would receive $90 at the outset. Original issue discount debt (OID debt)Original issue discount debt (OID debt)Debt that is initially offered at a price below par. 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. 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. 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. Further SuggestionsDiscounted dividend model (DDM)Discounted cash flow (DCF) Rediscount Forward discount Discounted payback Discount period Original Issue Discount securities (OIDS) Discounted payback period rule discounted rate mortgage Risk adjusted discount rate Discounted in or by market Accretion (of a discount) Pure discount bond Average discount rate Discount period Dividend Discount Model (DDM) Discount window Discount Discount broker Unamortized bond discount Straight Discount Accrued discount deep discount discount rate Discount yield |
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