diskontimarginaali

Diskontimarginaali, often translated as discount margin, refers to the difference between the face value of a security and its current market price, when that price is below face value. This difference represents the potential profit an investor can make if they hold the security until maturity and it is redeemed at its full face value. It is particularly relevant for instruments like zero-coupon bonds, where the entire return comes from this discount.

The discount margin can be seen as an indicator of the yield an investor expects to receive. A larger discount margin generally implies a higher expected yield, as the investor is purchasing the security at a significantly lower price relative to its future value. Conversely, a smaller discount margin suggests a lower expected yield. Factors influencing the discount margin include the time to maturity, the perceived creditworthiness of the issuer, and prevailing market interest rates. Investors often analyze the discount margin in conjunction with other yield measures to make informed investment decisions.