Discount Note

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 discount note has a face value of $1,000, it may be issued to the holder at $900. When it matures, the holder receives the full $1,000. A discount note does not pay a coupon; rather, the difference between the discount and the face value takes the place of the coupon. See also: coupon-equivalent yield.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
M2 EQUITYBITES-March 25, 2014--World Bank adds CastleOak Securities to discount note dealer group
BANKING AND CREDIT NEWS-March 25, 2014--World Bank adds CastleOak Securities to discount note dealer group
It plans to finance USD70m of the purchase price for West Sirius's owber with the proceeds from the issue of a zero coupon discount note to the vendor.
During this period, the rate is based on the one-month Freddie Mac Reference Bill[R] index, a short-term, unsecured debt Freddie Mac issues to supplement its weekly discount note program.
Both use r within a range of reasonable rates which range from Treasury Bill rates of 5% to 50% which is a not unreasonable rate for an unsecured discount note for a small business start-up charged by venture capital firms.
Aside from Treasury discount notes, securities issued by Government Sponsored Enterprises were the next largest source for fund assets.
The National Bank of Kazakhstan on March 27 launched a new mobile application - Invest Online, which can be used to buy discount notes of the central bank.