Pre discount意思

"Pre discount" is a term used in accounting and finance to indicate the value of a financial instrument, such as a bond or a bill, before any discounts or coupons have been applied. It refers to the face value or par value of the instrument, which is the amount that the issuer agrees to pay at maturity, without taking into account any discounts or premiums that may be associated with the purchase or sale of the instrument.

For example, if a bond is issued with a face value of $1,000 and is sold at par, the pre-discount price would be $1,000. However, if the bond is sold at a discount, the pre-discount price would still be $1,000, but the purchase price would be less than $1,000. The difference between the face value and the purchase price is the discount, which represents the interest earned on the bond.

In the context of sales or discounts on goods and services, "pre discount" might refer to the original price of an item before any discounts have been applied. For example, if a shirt is priced at $50 and is on sale for $40, the pre-discount price would be $50.