Discount instruments: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Doug Williamson (Spacing.) |
imported>Doug Williamson (Expand first sentence.) |
||
| Line 1: | Line 1: | ||
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. | Depending on the market, their prices may be quoted conventionally in the market either on a discount basis or on a yield basis. | ||
| Line 17: | Line 17: | ||
* [[Interest bearing instruments]] | * [[Interest bearing instruments]] | ||
* [[Interest-bearing instruments]] | * [[Interest-bearing instruments]] | ||
* [[Security]] | |||
* [[Sterling commercial paper]] | * [[Sterling commercial paper]] | ||
* [[US commercial paper]] | * [[US commercial paper]] | ||
* [[Yield]] | * [[Yield]] | ||
Revision as of 16:59, 6 August 2019
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.)
