Discount instruments: Difference between revisions
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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. | ||
Discount instruments quoted on a discount basis include bills of exchange and US domestic commercial paper (USCP). | Discount instruments quoted on a discount basis include bills of exchange and US domestic commercial paper (USCP). | ||
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(However, SCP may also be issued on an interest bearing basis.) | (However, SCP may also be issued on an interest bearing basis.) | ||
== See also == | == See also == | ||
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* [[Discount basis]] | * [[Discount basis]] | ||
* [[Discount rate]] | * [[Discount rate]] | ||
* [[Interest-bearing instruments]] | * [[Interest-bearing instruments]] | ||
* [[Security]] | |||
* [[Sterling commercial paper]] | * [[Sterling commercial paper]] | ||
* [[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.)
