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Discount rate |
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Discount rate1. The rate, per year, at which future values are diminished to make them comparable to values in the present. Can be either subjective (reflecting personal time preference) or objective (a market interest rate). 2. The interest rate that the Fed charges commercial banks for very short-term loans of reserves. One of the tools of monetary policy.Discount rateThe interest rate at which the US Federal Reserve lends money to member banks.Similar MatchesDiscount securitiesDiscount securitiesNon-interest-bearing money market instruments that are issued at a discount and redeemed at maturity for full face value, e.g., US Treasury bills. Discount yieldDiscount yieldThe yield on a security purchased at a price below its face value. DiscountDiscountThe difference between the net asset value (NAV) per share of an investment trust and the share price, expressed as a percentage of the net asset value per share.e.g. if the NAV is £3.00, and the share price of the trust is £2.70, the trust is trading at a 10% discount to its NAV.When the share price is above the net asset value, it is said to be trading at a premium. Original issue discount debt (OID debt)Original issue discount debt (OID debt)Debt that is initially offered at a price below par. Discounted rate mortgageDiscounted rate mortgageA mortgage which guarantees the interest rate charged will remain a set number of percentage points below the lender's standard variable rate. The rate changes as base rate moves up and down, but the relationship between base rate and the rate you pay remains constant. Further SuggestionsDiscount periodUnamortized bond discount deep discount Original Issue Discount securities (OIDS) Accrued discount Underwriters discount Documented discount notes Discount Discount broker Discount period Discount Points Discount yield Accretion (of a discount) dividend discount model Discounted cash flow (DCF) Discount window Stepped discount mortgage Discounting Discount Interest Discounted payback Discount Arbitrage Straight Discount Discounted payback period rule Discounted dividend model (DDM) Discounted basis |
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