The-definition.com

Definition

Bank discount rate

Bank discount rate is the method by which yields on Treasury bills and other money market securities are calculated using par value and a 360-day year to determine the appropriate discount rate or yield.

Share it:  Cite

More from this Section

  • Coupon or bearer bond
    Coupon or bearer bond one with dated coupons attached, which the bondholder must cut off ...
  • A/P
    A/P- in international trade documentation, abbreviation for “authority to purchase” ...
  • Right share
    Right shares are those shares which are issued by a corporation in ratio of equity shares ...
  • After Date
    After Date: Payment of a negotiable instrument, such as a bank draft, becomes due a specified ...
  • Calendar Spread
    Calendar Spread is an option or future market method in which two functions are placed ...