Bank Discount Basis

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Definition: Bank Discount Basis


Bank Discount Basis


Full 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 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.


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Definition Sources


Definitions for Bank Discount Basis are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.