Discount Margins financial definition of Discount Margins
Discount Margin (redirected from Discount Margins)
The average, expected return
over a given reference rate
for a floating-rate security
. Because a floating-rate security by definition changes its return over time, the discount margin estimates the return over the reference rate by assuming that the floating rate will follow a certain pattern between issue
References in periodicals archive
High discount margins
are prevalent, consumers are prone to impulse buys, and repeat business is difficult to predict, Anant Choubey, vice president of sales and marketing at Capillary Technologies, says.
An interest profit is the difference between returns on invested premiums and the discount margins
on those premiums which insurers promise to policyholders.