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.
Related information about bank discount basis:
- Bank Discount Basis Definition | Investopedia
A quoting convention used by financial institutions when quoting prices for fixed- income securities sold at a discount, particularly U.S. Government issues.
- Bank-Discount Basis - Financial Dictionary - The Free Dictionary
A way to quote the price for bonds. It is calculated as the annualized yield assuming a 360 day year. One calculates the discount yield thusly: Discount yield ...
- What is bank discount basis? definition and meaning
Definition of bank discount basis: A type of quoting convention that is used by financial institutions when they are quoting the prices for fixed income securities ...
- bank-discount basis - Invest Definition
bank-discount basis definition: A method of calculating the quoted yield on a debt security. In a bank-discount basis calculation, the amount of discount from face ...
- Bank discount basis Definition - NASDAQ.com
Bank discount basis: read the definition of Bank discount basis and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.
- bank discount basis Definition | Business Dictionaries from ...
yield on a security sold at a discount-U.S. treasury bills sold at $9,750 and maturing at $10,000 in 90 days, for instance. Also called bank discount basis.
- Bank Discount Basis - QFinance
Definition of bank discount basis from QFinance - The Ultimate Financial Resource. What is bank discount basis? Definitions and meanings of bank discount ...
- Discount Yield
Yields for discount instruments traded in the money market are generally quoted on a bank discount basis, which amply illustrates this tradeoff. The bank ...