Diskonttokoron

Diskonttokoron is a term that can refer to two distinct, though related, concepts in economics and finance. The first, and most common, usage refers to a discounted bond. A discounted bond is a debt security that is sold for less than its face value, or par value. This discount arises when the bond's coupon rate is lower than the prevailing market interest rates. Investors purchase these bonds at a lower price, and when the bond matures, they receive the full face value. The difference between the purchase price and the face value represents the investor's return. Zero-coupon bonds are a common example of discounted bonds, as they do not pay periodic interest and are instead issued at a deep discount.

The second, less common, usage of Diskonttokoron can refer to the discount rate applied in the context of foreign exchange. In this sense, it relates to the concept of interest rate parity, which suggests that the difference in interest rates between two countries should be equal to the difference between the forward and spot exchange rates. A higher interest rate in one country might lead to a discounted forward exchange rate for that country's currency, implying that the market expects the currency to depreciate. This ensures that investors are indifferent between holding domestic or foreign assets. Both meanings highlight the relationship between price, interest rates, and future value.