Discount

1. In bond accounting, bonds are sold at a discount if the market interest rate is higher than the stated interest rate. The bond has to sell at a discount because investors can obtain a higher interest rate on other investments. See also premium and stated interest rate and effective interest rate and par value (of a bond) and bond selling price. In the case of debt securities, the difference between the price paid by an investor and the face value.
2. In the case of products for sale, the difference between the price paid by a customer and the full price of the item.