Average discount rate

Definition:

Purchasers tender their competitive bids on a discount rate basis. The weighted, or adjusted mean of all bids accepted in Treasury bill auctions.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Trade on top of

Trade at a narrow speed or no spread in basis points relative to some other bond yield, usually Treasury bonds.

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