Discounted interest - Financial definition
Financial acronyms
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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.