The bill rate, also known as the discount rate, is the rate applied in the discount market at which bills of exchange are purchased at a value less than their face value upon maturity. This rate considers the quality and associated risk of the bill being discounted.
A discount house, typically a specialized financial institution or bank, focuses on operating in the discount market, primarily dealing with the discounting of bills of exchange, including Treasury bills.
In the UK, the discount market refers to a segment of the money market where banks, discount houses, and bill brokers engage in the discounting of bills and short-term financial instruments to facilitate liquidity and profitability.
