Voir iotafinance en FrançaisYou are viewing the English version of iotafinance.comIotafinance auf Deutsch sehen
Icon for the finance glossary section

Discounted interest - Financial definition

Tags: 
Translations:      FR  intérêts précomptés (n.m.pl.)     ES  intereses descontados (n.m.pl.)     DE  diskontierte Zinsen (n.f.pl.) 

Concise definition of the term discounted interest

Interest is said to be discounted when it is substracted at the begin of duration of an investment instead of being added at the end.

Comprehensive definition of the term discounted interest

In finance, there are several types of instruments which are issued as discount securities. They all are issued at a discount, and redeemed at par without any intermediary interest payment.
Examples are zero-coupon bonds, Treasury bills, certificates of deposit and commercial papers.

Additional information related to this definition

Definitions of related terms

Browse the financial glossary in alphabetical order