Interest computed on the face value of a loan and deducted in advance from the loan by the lending bank.
Example sentencesExamples
For example, the bank discount method is used for Treasury bills sold by the U.S. government and commercial paper issued by businesses.
If a bank customer obtains such an insurance quote, the bank will provide bank discounts on bank service fees for bank products to such customer.
The bank discount rate might also be tied to the amount of monthly charges.
Since we computed the bank discount rate from the dollar discount and the investment, all we have to do is reverse the process.
The bank discount rate normalizes by the face value of the security (for example, U. S. Treasury Bills) and understates the true yield earned by investors.
Definition of bank discount in US English:
bank discount
noun
Interest computed on the face value of a loan and deducted in advance from the loan by the lending bank.
Example sentencesExamples
The bank discount rate normalizes by the face value of the security (for example, U. S. Treasury Bills) and understates the true yield earned by investors.
For example, the bank discount method is used for Treasury bills sold by the U.S. government and commercial paper issued by businesses.
Since we computed the bank discount rate from the dollar discount and the investment, all we have to do is reverse the process.
If a bank customer obtains such an insurance quote, the bank will provide bank discounts on bank service fees for bank products to such customer.
The bank discount rate might also be tied to the amount of monthly charges.