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Discount yield |
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Discount yieldThe yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: (discount divided by the face value of the security) multiplied by the (number of days in the year divided by the number of days to maturity).Discount yieldThe yield on a security purchased at a price below its face value.Similar MatchesDiscounted paybackDiscounted paybackThe length of time needed to recoup the present value of an investment. Documented discount notesDocumented discount notesCommercial paper backed by normal bank lines of credit plus a letter of credit from a bank stating that it will pay off the paper at maturity if the borrower defaults. Such paper is also referred to as L.O.C. paper. Accrued discountAccrued discountInterest that accumulates on savings bonds from the date of purchase until the date of redemption or final maturity, whichever comes first. Series A, B, C, D, E, EE, F, I, and J are discount or accrual bonds, meaning principal and interest are paid when the bonds are redeemed. Series G, H, HH, and K are current-income bonds, and the semiannual interest paid to their holders is not included in accrued discount. Discount securitiesDiscount securitiesNon-interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., US Treasury bills. Discount periodDiscount periodThe time at the beginning of a mortgage life span when you are offered reduced repayments. Can be useful to help you overcome the often significant outlay involved with buying a property. Further SuggestionsPure discount bondRisk adjusted discount rate dividend discount model discounted cashflow Discount payment Dividend Discount Model (DDM) Original issue discount debt (OID debt) Accretion (of a discount) Bank discount basis Discounted dividend model (DDM) Volume discount Discounted payback period rule Unamortized bond discount bond discount Deep discount bond discount Underwriters discount Discount Points Discounted in or by market deep discount Forward discount Discount Discount window Discount rate Rediscount |
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