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What You Should Know About the Discount Rate


The Discount Rate and Discounted Cash Flow Analysis. The discount rate is a crucial component of a discounted cash flow valuation. The discount rate can have a big impact on your valuation and there are many ways to think about the selection of discount rates. Hopefully this article has clarified and improved your thinking about the discount rate.

Actived: Saturday Oct 12, 2019

Link: https://propertymetrics.com/blog/npv-discount-rate/

Discount Rate Definition - investopedia.com


The discount rate can refer to either the interest rate that the Federal Reserve charges banks for short term loans or the rate used to discount future cash flows in discounted cash flow (DCF

Actived: Friday Jun 22, 2018

Link: https://www.investopedia.com/terms/d/discountrate.asp

Discounting the future - ejolt.org


High discount rates imply giving low values to future damages, and thus, betting against the environment and future generations. A distinction can also be made between public or social discount rates and private discount rates. Both sectors use a positive discount rate (that is r > 0), but there is a difference in the fact that the social

Actived: Wednesday Oct 9, 2019

Link: http://www.ejolt.org/2013/01/discounting-the-future/

Discounting - Wikipedia


The discount, or charge, is the difference between the original amount owed in the present and the amount that has to be paid in the future to settle the debt. The discount is usually associated with a discount rate, which is also called the discount yield.

Actived: Tuesday Oct 8, 2019

Link: https://en.wikipedia.org/wiki/Discounting

A Guide on the Risk-Adjusted Discount Rate - Investopedia


The concept of the risk-adjusted discount rate reflects the relationship between risk and return. In theory, an investor willing to be exposed to more risk will be rewarded with potentially higher

Actived: Tuesday Aug 30, 2016

Link: https://www.investopedia.com/articles/budgeting-savings/083116/guide-riskadjusted-discount-rate.asp

What Is the Discount Rate? | The Motley Fool


First, a discount rate is a part of the calculation of present value when doing a discounted cash flow analysis, and second, the discount rate is the interest rate the Federal Reserve charges on

Actived: Sunday Jan 31, 2016

Link: https://www.fool.com/knowledge-center/discount-rate.aspx

What Is the Discount Rate? - ThoughtCo


In economics and finance, the term "discount rate" could mean one of two things, depending on context. On the one hand, it is the interest rate at which an agent discounts future events in preferences in a multi-period model, which can be contrasted with the phrase discount factor.On the other, it means the rate at which United States banks can borrow from the Federal Reserve.

Actived: Wednesday Oct 9, 2019

Link: https://www.thoughtco.com/discount-rate-definition-1146078

What You Need to Know About the Fed's Discount Rate


The discount rate is typically higher than the fed funds rate, so it is used as a last resort by banks that need to borrow. For example, in early 2012 the primary discount rate was 0.75 percent, while the fed funds rate was targeted in a range from 0 to 0.25 percent. Bank borrowers also need to put up collateral to borrow from the discount

Actived: Friday Oct 11, 2019

Link: https://www.thebalance.com/what-is-the-discount-rate-416870

Discount rate financial definition of discount rate


The interest rate at which the Federal Reserve makes short-term loans to member banks.The discount rate is an indicator of the direction in which the Federal Reserve is trying to push the broader economy.In general, a low interest rate indicates that it is trying to promote growth by making liquidity easily available, and a high interest rate shows that the Fed is concerned about inflationary

Actived: Saturday Oct 12, 2019

Link: https://financial-dictionary.thefreedictionary.com/discount+rate

Federal Discount Rate: Definition, Impact, How It Works


The primary credit rate is the basic interest rate charged to most banks. It's higher than the fed funds rate.The current discount rate is 2.75%. The secondary credit rate is a higher rate that's charged to banks that don't meet the requirements needed to achieve the primary rate. It's 3.25%. It's typically a half a point higher than the primary credit rate.

Actived: Saturday Oct 12, 2019

Link: https://www.thebalance.com/federal-reserve-discount-rate-3305922

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