Discount instruments

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.)

See also

• Discount
• Discount basis
• Discount rate
• Interest bearing instruments
• Interest-bearing instruments
• Sterling commercial paper
• US commercial paper
• Yield