Discounted Basis: The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: (discount divided by the face value of the security) multiplied by the (number of days in the year divided by the number of days to maturity).

 

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Discounted Basis: The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: . . . View Full Definition

Fare Basis: Conditions, including service class and ticketing provisions, that determine a fare. Fare basis is designated by identifying letters and/or numbers on a ticket.

Fare Basis (Code): The sometimes confusing code or codes on which the price of an airline ticket is based. Some itineraries contain many different codes. Most will indicate whether a fare is refundable or not. . . . View Full Definition

Fixed Price Basis: Payments of a fixed, equal amounts paid to an insurance company for insurance or an annuity.