Business, Legal & Accounting Glossary
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.
To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.
Definitions for Bank Discount Basis are sourced/syndicated and enhanced from:
This glossary post was last updated: 20th November, 2021 | 0 Views.