What type of investment is characterized by being issued at a discount from the face value and is often used in international trade?

The correct choice for this type of investment is indeed a banker's acceptance. A banker's acceptance is a short-term debt instrument that is created when a non-financial company needs to finance the import or export of goods and requires a guarantee from a bank. It is characterized by being a promise to pay the holder a stated sum at a future date and is typically issued at a discount from its face value, making it appealing to investors seeking short-term investments.

In the context of international trade, banker's acceptances facilitate transactions between exporters and importers, providing assurance of payment as the bank guarantees the company's obligations. This characteristic is crucial in global trade, where the risks associated with payments can be higher.

The other investment options listed do not fit this description as directly as banker's acceptances. Treasury bills, for example, are government-backed short-term securities issued at a discount but are not specifically tailored for international trade. Commercial paper is an unsecured, short-term debt instrument used by companies to finance their immediate needs and is not inherently linked to international transactions. Certificates of deposit are time deposits offered by banks that pay interest and do not serve the same function in trade finance.