discount yield investment & finance definition The return on a security that is sold at a discount, such as money market instruments, commercial paper, and Treasury bills. These instruments are priced at a discount from par value (face value).
Discount yield The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125.
discount yield The yield on a security that is acquired at a discount. discounted This is when expected upcoming news affects a security's value.
See also: Rights, Right, Commercial Paper, Security, Basis
 
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