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Stepped discount mortgage |
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Stepped 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.Stepped discount mortgage Similar MatchesDiscounted payback period ruleDiscounted payback period ruleAn 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. Discount windowDiscount windowFacility provided by the Fed enabling member banks to borrow reserves against collateral in the form of governments or other acceptable paper. Discounted cashflowDiscounted cashflowA formula closely related to Net Present Value which springs from the idea that £1 received in ten years' time is not worth as much as £1 received now because the £1 received now could be invested for those ten years and compound into a higher value.Discounted cashflow applies a discount rate to future cashflows to establish their present worth. Added to the company's terminal value (i.e. what you'd get if you sold its assets), this gives you a total value for the whole business. Forward discountForward discountA currency trades at a forward discount when its forward price is lower than its spot price. DiscountDiscount1. Any reduction in price or value, especially when below a stated or normal price. 2. To buy or sell commercial paper at a price below face value to account for interest to accrue before maturity. Further SuggestionsDividend Discount ReturnOriginal Issue Discount securities (OIDS) Forward discount Discount Points Discounting Accretion (of a discount) bond discount Discount rate discount rate Discount period Original issue discount debt (OID debt) Average discount rate Discount period Dividend Discount Model (DDM) Discount securities Discounted basis Discount factor Discount bond Discount Arbitrage discount Accrued market discount Deep discount bond Accrued discount Volume discount Underwriters discount |
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