Discount Note

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Dictionary Says

Definition of 'Discount Note'

A short-term debt obligation issued at a discount to par. Discount notes are similar to zero-coupon bonds and Treasury bills and are typically issued by government-sponsored agencies or highly rated corporate borrowers. Discount notes do not make interest payments; instead the bond is matured at a par value above the purchase price, and the price appreciation is used to calculate the investment's yield.  

Discount notes will have maturity dates of up to one year in length.  
Investopedia Says

Investopedia explains 'Discount Note'

The biggest issuers of discount notes are Freddie Mac and the Federal Home Loan Banks. Most institutional fixed-income buyers will compare the yield-to-maturity (YTM) of various zero-coupon debt offerings with standard coupon bonds, looking for yield pickup in discount bonds.  

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'Discount Note'

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    Exchange-traded notes have many benefits, but they may
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    ... This article provides an overview of the risks and due diligence requirements
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    ... will default) is also considered when determining the appropriate discount rate
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  • An Introduction To Structured Products

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    ... This note is fully principal-protected, meaning that you will get your $1,000 back ...
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  • Top 3 Pitfalls Of Discounted Cash Flow Analysis

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    ... Where: PV = present value CF i = cash flow in year i k = discount rate TCF = the ...
    Note that the PV has to be divided by the current number of shares outstanding ...

  • How To Compare Yields On Different Bonds

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    ... Bond Concepts tutorials.) Current Conventions US Treasury bills (T-bills) and corporate
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  • Structured Notes: Buyer Beware!

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    ... The product is the structured note and it advertises its ability to benefit from
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  • Avoid Tricky Tax Issues On Municipal Bonds

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    ... investors must be aware that bonds purchased at a discount (less than par value),
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  • What is the name of the currency in New Zealand?

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    ... Interestingly, the polymer note can go through a washing machine without suffering
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