True discount
Discount Dis"count`, n. [Cf. F. d['e]compte. See {Discount}, v. t.] 1. A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted. [1913 Webster]

2. A deduction made for interest, in advancing money upon, or purchasing, a bill or note not due; payment in advance of interest upon money. [1913 Webster]

3. The rate of interest charged in discounting. [1913 Webster]

{At a discount}, below par, or below the nominal value; hence, colloquially, out of favor; poorly esteemed; depreciated.

{Bank discount}, a sum equal to the interest at a given rate on the principal (face) of a bill or note from the time of discounting until it become due.

{Discount broker}, one who makes a business of discounting commercial paper; a bill broker.

{Discount day}, a particular day of the week when a bank discounts bills.

{True discount}, the interest which, added to a principal, will equal the face of a note when it becomes due. The principal yielding this interest is the present value of the note. [1913 Webster]


The Collaborative International Dictionary of English. 2000.

Look at other dictionaries:

  • true discount — noun : arithmetical discount …   Useful english dictionary

  • Discount — Dis count , n. [Cf. F. d[ e]compte. See {Discount}, v. t.] 1. A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted. [1913… …   The Collaborative International Dictionary of English

  • Discount broker — Discount Dis count , n. [Cf. F. d[ e]compte. See {Discount}, v. t.] 1. A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted.… …   The Collaborative International Dictionary of English

  • Discount day — Discount Dis count , n. [Cf. F. d[ e]compte. See {Discount}, v. t.] 1. A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted.… …   The Collaborative International Dictionary of English

  • Discount Yield — is a measure of a bond s percentage return. Discount yield is most frequently used to calculate the yield on short term bonds and treasury bills sold at a discount. This yield calculation uses a 30 day month and 360 day year to simplify… …   Investment dictionary

  • discount — dis|count1 S3 [ˈdıskaunt] n a reduction in the usual price of something 10% discount/discount of 25% etc ▪ Members get a 15% discount . at a discount ▪ Employees can buy books at a discount. discount on ▪ The Young Persons Railcard gives you a… …   Dictionary of contemporary English

  • discount rate — Finance. 1. the rate of interest charged in discounting commercial paper. 2. the interest rate charged by Federal Reserve Banks on loans to their member banks, usually against government securities as collateral. 3. the rediscount rate. [1925 30] …   Universalium

  • discount — ♦♦♦ discounts, discounting, discounted (Pronounced [[t]dɪ̱skaʊnt[/t]] for meanings 1 and 2, and [[t]dɪska͟ʊnt[/t]] for meaning 3.) 1) N COUNT A discount is a reduction in the usual price of something. They are often available at a discount... All …   English dictionary

  • discount — 1 noun (C) 1 a reduction in the cost of goods that you are buying: Do I get a discount if I buy a whole case of wine? | discount price/fare (=cheaper than the usual price) | discount store/shop/warehouse (=where you can buy goods cheaply) 2 at a… …   Longman dictionary of contemporary English

  • true yield — A seldom used term meaning the simple interest yield for an investment maturing in one year or less. In calculating true yield, the actual number of days in the year (365) is divided by the actual number of days that the investment income is… …   Financial and business terms

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