Reflects the additional amount of money earned at maturity of a floating rate bond above the index. The amount of the margin depends on the security's price and how that price compares to the reference rate. The discount margin offers a potential reward for buying a higher risk bond.
Related information about discount margin:
- Discount Margin (DM) Definition | Investopedia
The return earned in addition to the index underlying the floating rate security.
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Three ways to calculate the discounted cash flow margin on a variable rate security or floating rate note, including a super quick and easy way to approximate it ...
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The average, expected return over a given reference rate for a floating-rate security. Because a floating-rate security by definition changes its return over time, ...
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A discount margin is the amount of return that is earned over and above a specific reference rate associated with some type of floating rate security. The actual ...
- How to Calculate Discount Margin - Financial Web
The discount margin is the additional return earned beyond earnings based on ... The discount margin, essentially, is how much additional money an investor ...
- Discount Margin vs. Spread | eHow.com
Discount Margin vs. Spread. Discount margin and spread are two different concepts in investing. A spread is the difference between a bid and an ask price and ...
- Discount margin for floating-rate bond - MATLAB
This MATLAB function calculates the discount margin or zero discount margin for a floating-rate bond.
- What is discount margin? definition and meaning
Definition of discount margin: Reflects the additional amount of money earned at maturity of a floating rate bond above the index. The amount of the margin ...