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Short-Term Discount Note

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Short-Term Discount Note
A debt security with a maturity of one year or less issued at a discount to its face value. For example, if a short-term discount note has a face value of $1000, it may be issued to the holder at $900. When it matures, the holder receives the full $1000. A short-term discount note does not pay a coupon; rather the difference between the discount and the face value takes the place of the coupon. They are often issued by governments and low risk corporate borrowers. See also: Coupon-Equivalent Yield, Zero-Coupon Bond.


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With this designation, Stone & Youngberg will be able to underwrite a wide variety of securities including callable and non-callable bonds; access FHLB's vast short-term discount note program; structure securities for zeros, zero-callables, step-ups, callables, single-index floaters, scheduled amortizing notes, and bullets to fill customer requests; and, expand distribution of securities to individual and institutional investors.
Although the weekly Benchmark Bills auction today is cancelled, the short-term Discount Note issuances are ongoing.
 
 
 
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