Discount
(1) A bond trading in the market at a price below its face value.
(2) The amount a bond’s market price is below its face value.
(3) Securities that are issued for less than their face value and mature at par, such as T-bills. At maturity, the difference between the purchase price and the face amount is considered interest.
(2) The amount a bond’s market price is below its face value.
(3) Securities that are issued for less than their face value and mature at par, such as T-bills. At maturity, the difference between the purchase price and the face amount is considered interest.
Updated on: 24/04/2023
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