Discount instruments: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Expand first sentence.) |
imported>Doug Williamson (Update link.) |
||
| (2 intermediate revisions by the same user not shown) | |||
| Line 15: | Line 15: | ||
* [[Discount basis]] | * [[Discount basis]] | ||
* [[Discount rate]] | * [[Discount rate]] | ||
* [[Interest-bearing instruments]] | * [[Interest-bearing instruments]] | ||
* [[Security]] | * [[Security]] | ||
| Line 21: | Line 20: | ||
* [[US commercial paper]] | * [[US commercial paper]] | ||
* [[Yield]] | * [[Yield]] | ||
[[Category:Corporate_finance]] | |||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 14:41, 16 February 2022
Discount instruments are securities that are issued and traded at a discount to their face value.
Depending on the market, their prices may be quoted conventionally in the market either on a discount basis or on a yield basis.
Discount instruments quoted on a discount basis include bills of exchange and US domestic commercial paper (USCP).
Discount instruments quoted on a yield basis include sterling commercial paper (SCP) when issued at a discount.
(However, SCP may also be issued on an interest bearing basis.)
