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| 1. ''Discount instruments - noun.''
| | Electronic Data Interchange. |
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| In relation to a discount instrument, the discount is the difference between the current market price and the redemption amount.
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| 2. ''Bonds.''
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| A coupon-paying bond trading in the market ''at a discount'' has a market value less than its par value.
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| 3. ''Foreign currency - forward market.''
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| A currency trading ''at a discount'' in the forward foreign exchange market is weaker in the forward market than in the spot market.
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| 4. ''Verb - financial instruments.''
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| In relation to financial instruments, to exchange an instrument with a future maturity date, for a 'discounted' market value today.
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| Today's market value being smaller than the redemption amount (receivable at maturity) by the amount of the discount.
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| 5. ''Verb - discounted cash flow.''
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| In relation to a money amount, to discount is to make smaller.
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| For example, to discount back a future cashflow to a (smaller) present value in discounted cash flow (DCF) analysis.
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| == See also == | | == See also == |
| * [[Bill discounting]] | | * [[Electronic data interchange]] |
| * [[Coupon bond]] | | * [[UN/EDIFACT]] |
| * [[Discount house]]
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| * [[Discount instruments]]
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| * [[Discount rate]]
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| * [[Discounted cash flow]]
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| * [[Early bird rate]]
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| * [[Premium]]
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| * [[Spot market]]
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| [[Category:Cash_management]]
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| [[Category:Financial_products_and_markets]]
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Revision as of 15:56, 17 June 2016
Electronic Data Interchange.
See also
