What does it mean to borrow money on a discount basis? This has to do with borrowing money from a bank on a discount basis. This is not related to bond issues/sales. (See chapter 7, page 238, "Interest Calculation Method").

Be cautious: borrowing on a discount basis has to do with going to a lender (banker) for a loan. Be sure not to confuse borrowing on a discount bases with the bond discount discussed later in chapter 7.