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give a discount

Discount refers to the unexpired commercial acceptance bill or bank acceptance bill issued by the payer, accepted by the acceptor and then transferred to the transferee (holder). The transferee (holder) applies to a financial institution such as a bank to realize the bill, and the bank and other financial institutions deduct the interest from the discount date to the maturity date of the bill according to the par value, and pay the balance to the holder (payee). The discount period shall not exceed 6 months from the date of discount to the maturity date of the bill. The actual discount amount is calculated by deducting the interest from the discount date to the day before the maturity of the bill, and the discount period of the acceptor in different places plus the transfer date is 3 days.

Generally speaking, bill discount can be divided into three types, namely, discount, discount and rediscount.

Discount: refers to the bill behavior that the holder of a commercial bill transfers the rights of the bill to the bank in order to obtain funds before the bill expires. It is a way for the holder to get financing from the bank.

Discounted cash: refers to the fact that commercial banks give discounted bills that have not yet expired to other commercial banks or discount institutions for discount in order to obtain financing when funds are temporarily insufficient.

Rediscussion: refers to the behavior of the central bank to provide financing support to commercial banks by purchasing discounted but not yet expired commercial bills held by commercial banks.

The nature of discount: discount is an asset business of banks. The drawee of a bill owes a debt to the bank, and the bank actually has an indirect lending relationship with the drawee.

Discount interest rate: The floating discount interest rate based on the current rediscount interest rate of the People's Bank of China is the market price, which shall be determined by both parties through consultation, but shall not exceed the current loan interest rate.

Calculation of discount interest: discount interest is the interest paid by the payee of the bill to the discount bank in order to obtain the fare before the bill expires. The calculation method is: discount interest = discount amount x discount rate x discount period.