Definitions (4)

1. The amount by which a bond's par exceeds its market price.
2. The amount by which the Net Asset Value per share of a closed-end fund's holdings exceeds its market price.
3. Anything selling below its normal price. opposite of premium.
4. In the case of a convertible security, the difference between the gross proceeds received on sale and the convertible's price. This difference occurs whenever the market expects that the convertible security will be redeemed before the next coupon date, and so investors will receive accrued interest.

Use discount in a sentence

I was glad that they were offering me a discount because I needed to save all the money I could for a new car.

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The federal bank gives the commercial banks a discounted interest rate when requesting a loan so that the banks will not run out of money.

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I was walking through the store hopping for shoes, I didn't realize the Nike's had a 30% discount on them so I had to purchase a pair right away.

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