bank discount basis


A type of quoting convention that is used by financial institutions when they are quoting the prices for fixed income securities that are sold at a discount. This is primarily used with U.S. Government issues. These quotes are presented as a percentage of face value, and they are determined by discounting the bond by using the 360-day count convention, and assuming that there are twelve 30-day months in a year. The 30/360 day count convention is the standard when quoting government treasury bonds for banks.
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bank discount bank discount rate