Discount: Difference between revisions
imported>Doug Williamson (Add link.) |
imported>Doug Williamson (Update.) |
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1. | 1. | ||
''Noun | ''Noun'' | ||
In relation to a discount instrument, the difference between the current market price and the redemption amount. | In relation to a discount instrument, the difference between the current market price and the redemption amount. | ||
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4. | 4. | ||
''Verb | ''Verb'' | ||
In relation to a money amount, make smaller. For example, to discount back a future cashflow to a (smaller) present value. | In relation to a money amount, make smaller. For example, to discount back a future cashflow to a (smaller) present value. | ||
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5. | 5. | ||
''Verb | ''Verb'' | ||
In relation to financial instruments, to exchange an instrument with a future maturity date, for a 'discounted' market value today. Today's market value being smaller than the redemption amount (receivable at maturity) by the amount of the discount. | In relation to financial instruments, to exchange an instrument with a future maturity date, for a 'discounted' market value today. Today's market value being smaller than the redemption amount (receivable at maturity) by the amount of the discount. | ||
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* [[Bill discounting]] | * [[Bill discounting]] | ||
* [[Coupon bond]] | * [[Coupon bond]] | ||
* [[Discount]] | |||
* [[Discount instruments]] | * [[Discount instruments]] | ||
* [[Discount rate]] | * [[Discount rate]] | ||
* [[Premium]] | * [[Premium]] | ||
* [[Spot market]] | * [[Spot market]] | ||
Revision as of 12:18, 18 December 2016
1.
Noun
In relation to a discount instrument, the difference between the current market price and the redemption amount.
2.
A coupon bond trading in the market at a discount has a market value less than its par value.
3.
A foreign currency trading at a discount in the forward foreign exchange market is weaker in the forward market than in the spot market.
4.
Verb
In relation to a money amount, make smaller. For example, to discount back a future cashflow to a (smaller) present value.
5.
Verb
In relation to financial instruments, to exchange an instrument with a future maturity date, for a 'discounted' market value today. Today's market value being smaller than the redemption amount (receivable at maturity) by the amount of the discount.
