Risk adjusted discount rate


 

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Risk adjusted discount rate

The rate established by adding a expected risk premium to the risk-free rate in order to determine the present value of a risky investment.



Risk adjusted discount rate

Similar Matches

Accrued market discount

Accrued market discount

The rise in the market value of a discount bond as it approaches maturity (when it is redeemable at par) and not because of falling market interest rates.


Documented discount notes

Documented discount notes

Commercial 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.


Volume discount

Volume discount

A reduction in price based on the purchase of a large quantity.


Discount Points

Discount Points

The fee associated with the note rate for your loan, the more discount points you pay the lower the rate you can buy, the fewer you pay, the higher your rate. If the rate is high enough, the loan is priced above par and these premium points are available to pay closing costs creating a no or low fee loan.


Discounted payback period rule

Discounted payback period rule

An investment decision rule in which cash flows are discounted at an interest rate and one determines how long it takes for the sum of the discounted cash flows to equal the initial investment.


Further Suggestions

Accrued discount
Discount Interest
Dividend Discount Model (DDM)
Original issue discount debt (OID debt)
Discounted cash flow (DCF)
Discount securities
Bank discount basis
Discounting
Discount
Straight Discount
Discount bond
Discount Arbitrage
Forward discount
Average discount rate
Discount rate
Accretion (of a discount)
Discounted basis
discounted rate mortgage
Discount yield
Pure discount bond
Discount period
Discount broker
Dividend Discount Return
Discount factor
Rediscount


 
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