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WordNet-Online
Definitions from WordNet
Noun bank discount has 1 sense
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Definitions from the WebBank DiscountDefinition: Bank discount refers to the interest deducted in advance by a bank or financial institution when it buys a bill of exchange or a promissory note before its maturity date. Sense 1: As a noun, bank discount can refer to the amount of money deducted from the face value of a bill or note when it is sold or discounted prior to its maturity. It represents the interest charged for the time between the purchase date and the maturity date. Example sentence 1: The bank discount on the bill of exchange amounted to $1,500, reducing its face value. Example sentence 2: The promissory note was sold at a bank discount of 5%. Sense 2: As a verb, bank discount can mean the act of deducting the interest in advance by a bank or financial institution when purchasing a bill or note. Example sentence 1: The bank will discount the bill of exchange if the creditworthiness of the issuer is satisfactory. Example sentence 2: We need to calculate the bank discount in order to determine the net amount we will receive for the promissory note. Related products on Amazon | ||||
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