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# ''Noun.'' In relation to a discount instrument, the difference between the current market price and the redemption amount.
1. ''Discount instruments - noun.''


# A coupon bond trading in the market ''at a discount'' has a market value less than its par value.
In relation to a discount instrument, the discount is the difference between the current market price and the redemption amount.


# A foreign currency trading ''at a discount'' in the forward foreign exchange market is weaker in the forward market than in the spot market.


# ''Verb.'' In relation to a money amount, make smaller.  For example, to discount back a future cashflow to a (smaller) present value.
2. ''Bonds.''
 
A coupon-paying bond trading in the market ''at a discount'' has a market value less than its par value.
 
 
3. ''Foreign currency - forward market.''
 
A currency trading ''at a discount'' in the forward foreign exchange market is weaker in the forward market than in the spot market.
 
 
4. ''Verb - financial instruments.''  
 
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.
 
 
5. ''Verb - discounted cash flow.''
 
In relation to a money amount, to discount is to make smaller.   
 
For example, to discount back a future cashflow to a (smaller) present value in discounted cash flow (DCF) analysis.


# ''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.


== See also ==
== See also ==
* [[Bill discounting]]
* [[Coupon bond]]
* [[Coupon bond]]
* [[Discount basis]]
* [[Deep discount bond]]
* [[Discount factor]]
* [[Discount house]]
* [[Discount instruments]]
* [[Discount instruments]]
* [[Discount note]]
* [[Discount rate]]
* [[Discount Window Facility]]
* [[Discount yield]]
* [[Discounted cash flow]]
* [[Discounting]]
* [[Dividend discount model]]
* [[Early bird rate]]
* [[Forward discount]]
* [[Premium]]
* [[Premium]]
* [[Spot market]]
* [[Spot market]]
[[Category:Financial_products_and_markets]]

Latest revision as of 23:56, 10 February 2024

1. Discount instruments - noun.

In relation to a discount instrument, the discount is the difference between the current market price and the redemption amount.


2. Bonds.

A coupon-paying bond trading in the market at a discount has a market value less than its par value.


3. Foreign currency - forward market.

A currency trading at a discount in the forward foreign exchange market is weaker in the forward market than in the spot market.


4. Verb - financial instruments.

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.


5. Verb - discounted cash flow.

In relation to a money amount, to discount is to make smaller.

For example, to discount back a future cashflow to a (smaller) present value in discounted cash flow (DCF) analysis.


See also