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Discount factor |
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Discount factorPresent value of $1 received at a stated future date.Discount factor Similar MatchesAverage discount rateAverage discount ratePurchasers tender their competitive bids on a discount rate basis. The weighted, or adjusted, mean of all bids accepted in Treasury bill auctions. Discounted dividend model (DDM)Discounted dividend model (DDM)A formula to estimate the intrinsic value of a firm by figuring the present value of all expected future dividends. Discount ArbitrageDiscount ArbitrageA riskless arbitrage in which a discount option is purchased and an opposite position is taken in the underlying security. The arbitrageur may either buy a call at a discount and simultaneously sell the underlying security (basic call arbitrage) or maybuy a put at a discount and simultaneously buy the underlying security (basic put arbitrage). See also Discount. Documented discount notesDocumented discount notesCommercial paper backed by normal bank lines of credit plus a letter of credit from a bank stating that it will pay off the paper at maturity if the borrower defaults. Such paper is also referred to as L.O.C. paper. Accretion (of a discount)Accretion (of a discount)In portfolio accounting, a straight-line accumulation of capital gains on a discount bond in anticipation of receipt of par at maturity. Further SuggestionsStepped discount mortgageDiscount bond Forward discount Accrued discount deep discount Discounting Discount payment Deep discount bond discount dividend discount model Discount securities Discount discounted cashflow Discounted basis Straight Discount Rediscount Discount period Discounted cash flow (DCF) Underwriters discount discounted rate mortgage discount yield Volume discount Discount Points Discount rate Forward discount |
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