Money Markets

Discount Rate on a Bill

Definition

What is Discount Rate on a Bill?

A bill's discount from face value expressed using the market's stated convention.

Example in practice

A bill bought for ₦950 and repaid at ₦1,000 has a quoted discount based on ₦1,000 face value.

Keep learning

A short-term government debt instrument usually issued at a discount and repaid at face value.

Short-term unsecured debt issued by a company.

A time deposit or tradable bank instrument that pays interest over a stated term.

A portfolio of debt instruments with maturities spread across regular intervals.

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