Exchange Currency

discount margin

Reflects the additional amount of money earned at maturity of a floating rate bond above the index. The amount of the margin depends on the security's price and how that price compares to the reference rate. The discount margin offers a potential reward for buying a higher risk bond.

Related information about discount margin:
  1. Discount Margin (DM) Definition | Investopedia
    The return earned in addition to the index underlying the floating rate security.
     
  2. How to calculate discount margin on FRNs & Variable Rate Secs
    Three ways to calculate the discounted cash flow margin on a variable rate security or floating rate note, including a super quick and easy way to approximate it ...
     
  3. Discount Margin - Financial Dictionary - The Free Dictionary
    The average, expected return over a given reference rate for a floating-rate security. Because a floating-rate security by definition changes its return over time, ...
     
  4. What Is a Discount Margin?
    A discount margin is the amount of return that is earned over and above a specific reference rate associated with some type of floating rate security. The actual ...
     
  5. How to Calculate Discount Margin - Financial Web
    The discount margin is the additional return earned beyond earnings based on ... The discount margin, essentially, is how much additional money an investor ...
     
  6. Discount Margin vs. Spread | eHow.com
    Discount Margin vs. Spread. Discount margin and spread are two different concepts in investing. A spread is the difference between a bid and an ask price and ...
     
  7. Discount margin for floating-rate bond - MATLAB
    This MATLAB function calculates the discount margin or zero discount margin for a floating-rate bond.
     
  8. What is discount margin? definition and meaning
    Definition of discount margin: Reflects the additional amount of money earned at maturity of a floating rate bond above the index. The amount of the margin ...