discount rate


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Related to discount rate: Federal funds rate

discount rate

n.
1. The interest rate charged by a central bank on loans to its member banks. A change in the discount rate is usually followed by similar changes in the interest rates charged by banks and money markets.
2. The interest rate used in determining the present value of a future payment or series of payments.

discount rate

n
1. (Banking & Finance) the amount of interest deducted in the purchase or sale of or the loan of money on unmatured negotiable instruments
2. (Banking & Finance) the rate of interest deducted
ThesaurusAntonymsRelated WordsSynonymsLegend:
Noun1.discount rate - the rate of interest set by the Federal Reserve that member banks are charged when they borrow money through the Federal Reserve System
U.S.A., United States, United States of America, US, USA, America, the States, U.S. - North American republic containing 50 states - 48 conterminous states in North America plus Alaska in northwest North America and the Hawaiian Islands in the Pacific Ocean; achieved independence in 1776
interest rate, rate of interest - the percentage of a sum of money charged for its use
2.discount rate - interest on an annual basis deducted in advance on a loandiscount rate - interest on an annual basis deducted in advance on a loan
bank discount, discount
interest rate, rate of interest - the percentage of a sum of money charged for its use
bank rate - the discount rate fixed by a central bank
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References in periodicals archive ?
As Grossman (2000) notes, the Becker-Murphy model predicts a discount rate effect only under certain circumstances (the result is generally ambiguous in sign, and uncertain in magnitude).
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The decision to cut the discount rate at the central bank of Kuwait contributes another dose to push the wheel of local economic activity through cutting the cost of finance," said the central bank governor, Sheikh Salem Abdul-Aziz al-Sabah.
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The discount rates reflect that the bills sell for less than face value.
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The Federal Discount Rate as used in Amendment 60 is defined as the "Federal Reserve discount Rate on ninety-day commercial paper" then in effect.
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In determining the discount rate to be used to test whether a periodic adjustment is required, the Institute noted that the proposed regulations demonstrate a preference for using the overall weighted average cost of capital (WACC) of the company if it is publicly traded.
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The discount rate is normally determined using benchmarks derived from public market data.
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On September 22, 2005, the Federal Reserve Board approved actions by the Boards of Directors of the Federal Reserve Banks of Cleveland, Atlanta, and Dallas, increasing the discount rate at the Banks from 4 1/2 percent to 4 3/4 percent.
Increase in discount rate
If expected future payments for termination benefits are discounted, the discount rate should be determined by giving consideration to the estimated yield, over the period of time the benefits are to be provided, on the investments that are expected to be used to finance the payment of benefits, (5) with consideration given to the nature and mix of current and expected investments.
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Third, the discount rate will become an improved safety valve for releasing significant market pressures.
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The probabilistic settlement price, again at a 15% discount rate, is about $152,200.
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