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Disagio

discount on a loan or bond

noun dis-AH-zhee-oh Rare
People & Society Money

Origin: from Italian 'disagio' (inconvenience, discount)

Also means

issue discount

Usage Note

Disagio is the difference between the nominal value of a loan or bond and the lower amount actually paid out or received. Borrowers effectively pay a higher real interest rate when a Disagio is charged; it is tax-deductible in instalments (Verteilung).

Examples

"Die Bank gewährte ein Darlehen mit einem Disagio von drei Prozent."

Natural Translation

The bank granted a loan with a discount of three percent.

Literal Translation

The bank granted a loan with a discount of three percent.

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