Definition of "Discount"

A bond that trades in the market at a price below its face or redemption value. A bond selling below par is said to be \"selling at a discount.\"

Securities, such as treasury bills, that are issued for less than their face value and mature at face value. At maturity, the difference between the purchase price and the face value is the interest.

Relationship between two countries' currencies. For example, the French Franc may sell at a discount to the German Mark.