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| 1. ''Discount instruments - noun.'' | | 1. |
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| In relation to a discount instrument, the discount is the difference between the current market price and the redemption amount.
| | To discharge a debt by giving or doing something. |
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| 2. ''Bonds.'' | | 2. |
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| A coupon-paying bond trading in the market ''at a discount'' has a market value less than its par value.
| | More specifically to give money in return for goods or services. |
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| 3. ''Foreign currency - forward market.''
| | == See also == |
| | | * [[Debt]] |
| A currency trading ''at a discount'' in the forward foreign exchange market is weaker in the forward market than in the spot market.
| | * [[Pay down]] |
| | | * [[Payee]] |
| | | * [[Payment]] |
| 4. ''Verb - financial instruments.''
| | * [[Payor]] |
| | | * [[Positive pay]] |
| In relation to financial instruments, to exchange an instrument with a future maturity date, for a 'discounted' market value today.
| | * [[Reverse positive pay]] |
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| Today's market value being smaller than the redemption amount (receivable at maturity) by the amount of the discount.
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| 5. ''Verb - discounted cash flow.''
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| In relation to a money amount, to discount is to make smaller.
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| For example, to discount back a future cashflow to a (smaller) present value in discounted cash flow (DCF) analysis.
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| | | [[Category:Cash_management]] |
| == See also ==
| | [[Category:Liquidity_management]] |
| * [[Bill discounting]]
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| * [[Coupon bond]]
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| * [[Discount house]]
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| * [[Discount instruments]]
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| * [[Discount rate]]
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| * [[Discounted cash flow]]
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| * [[Premium]]
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| * [[Spot market]]
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Latest revision as of 21:17, 1 July 2022
1.
To discharge a debt by giving or doing something.
2.
More specifically to give money in return for goods or services.
See also
