Business and Personal Finance Dictionary

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• DISCOUNT SECURITIES
  
  1. Securities that do not pay periodic interest. Investors earn the difference between the discount issue price and the full face value paid at maturity. Treasury bills, banker’s acceptances, and zero coupon bonds are discount securities. Most commercial paper is also issued at a discount. See original issue discount. 2. Any security that is trading at a price less than par or 100.
  
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