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Discount bond |
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Discount bondDebt sold for less than its principal value. If a discount bond pays no coupon, it is called a zero coupon bond.Discount bond Similar MatchesForward discountForward discountA currency trades at a forward discount when its forward price is lower than its spot price. Discount yieldDiscount yieldThe yield on a security purchased at a price below its face value. Discounted payback period ruleDiscounted payback period ruleAn investment decision rule in which cash flows are discounted at an interest rate and one determines how long it takes for the sum of the discounted cash flows to equal the initial investment. Bond discountBond discountThe difference between a bond's face value and the lower market price.If the market price is higher than the face value, the difference is known as the bond premium.When interest rates rise, it is usual for bond prices to fall and when interest rates fall it is usual for bond prices to increase. DiscountDiscount1. Any reduction in price or value, especially when below a stated or normal price. 2. To buy or sell commercial paper at a price below face value to account for interest to accrue before maturity. Further SuggestionsDiscount rateAccrued discount Straight Discount Accrued market discount discounted rate mortgage Discount period Average discount rate Accretion (of a discount) Discount window Deep discount bond Dividend Discount Model (DDM) Documented discount notes Rediscount discount Forward discount discount rate Discount payment deep discount Pure discount bond Discounted dividend model (DDM) Discount broker Discounted basis Discount securities Discounted cash flow (DCF) Discount Arbitrage |
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