Discount

Posted in Finance, Accounting and Economics Terms, Total Reads: 938
Advertisements

Definition: Discount

It is the difference between the nominal amount of the liability and the actual amount paid.

It also means the amount by which a debenture/bond sells below its nominal value. It happens when the market interest rate is more than the interest rate offered by the bond. This weakens the financial condition of the bond and hence the market value decreases.

Discount is also offered by the creditors such that the debtor pays the amount before the due date. It is a concession given by the creditors.

 

Browse the definition and meaning of more terms similar to Discount. The Management Dictionary covers over 7000 business concepts from 6 categories.

Search & Explore : Management Dictionary



Share this Page on: