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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 MatchesDiscountingDiscountingCalculating the present value of a future amount. Discounting is opposite to compounding. Stepped discount mortgageStepped discount mortgageWhere the discount is, for example, fixed at one level for one year and then a slightly lesser level for two further years. Remember it is the percentage discount that is stepped and not the monetary amount, so your repayment can still vary. Forward discountForward discountOpposite of forward premium. Discount bondDiscount bondDebt sold for less than its principal value. If a discount bond pays no coupon, it is called a zero coupon bond. Volume discountVolume discountA reduction in price based on the purchase of a large quantity. Further SuggestionsRediscountDiscounted cash flow (DCF) Discount window Dividend Discount Return Discounted in or by market Accrued market discount Average discount rate discount yield Pure discount bond Documented discount notes Discounted payback Discounted payback period rule dividend discount model discounted cashflow Discounted dividend model (DDM) Deep discount bond Discount yield Unamortized bond discount Discounted basis Discount Arbitrage Original Issue Discount securities (OIDS) deep discount Discount Underwriters discount Accrued discount |
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