For Discount Rate we have terms and definitions in 14 topics. The topics are Accounting, Accounting Terms, Construction, Derivatives, E-Business, Economics, Finance, Financial, Financial Modeling, Frauds and Scams, International Economics, Real Estate, Securities and Value Investing.

Discount Rate (Accounting)

is the interest rate that the Federal Reserve of the U.S. Government charges a U.S. bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrowand such borrowing is quite limited because the Fed views it as a privilege to be used to meet short-term liquidity needsand not a device to increase earnings.

Discount Rate (Accounting Terms)

Rate at which INTEREST is deducted in advance of the issuance, purchasing, selling, or lending of a financial instrument. Also, the rate used to determine the CURRENT VALUE, or present value, of an ASSET or income stream.

Discount Rate (Construction)

A mortgage interest rate that is lower than the current rate for a certain period of time, e.g. 2.00% below variable rate for 2 years.

Discount Rate (Derivatives)

The rate of interest that the Bundesbank (Buba) charges for granting "rediscount credit". Typically, the discount rate is the lowest rate at which the Buba lends.

Discount Rate (E-Business)

A percentage fee paid to the merchant account provider or ISO (independent service organization) for handling an electronic transaction. Most Web merchants pay between two and 10 percent of their revenue from online credit card or electronic check orders.

Discount Rate (Economics)

Interest rate.

Discount Rate (Finance)

The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrow, and such borrowing is quite limited because the Fed views it as a privilege to be used to meet short-term liquidity needs, and not a device to increase earnings.

Discount Rate (Financial)

Is the interest rate used for adjusting for the time value of money for Net Present Value, Option Pricing or other Market Models. It can also refer to the rate that the Federal Reserve charges its members. Is the interest rate used for adjusting for the time value of money for Net Present Value, Option Pricing or other Market Models. It can also refer to the rate that the Federal Reserve charges its members.

Discount Rate (Financial Modeling)

The rate of interest used to calculate the Net Present Value (NPV) of investments. This could also be a company's "Hurdle" Rate, or minimum acceptable return.

Discount Rate (Frauds and Scams)

The rate of interest charged by a Federal Reserve Bank on a loan to a member bank, using government securities or eligible paper as collateral.

Discount Rate (International Economics)

1. 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 Rate (Real Estate)

A yield rate used to convert future payments or receipts into present value

Discount Rate (Securities)

The rate of interest the Federal Reserve Board charges member banks for reserves borrowed from the Fed.

Discount Rate (Value Investing)

The investor-specific reward for abstinence or patience or delaying consumption sought by the investor. At a minimum, the lowest risk (a.k.a. riskless or risk-free) rate of return on an alternative investment available to the investor with a time horizon comparable to that of the investor. The investor's time horizon is the duration from the present time of potential purchase of the investment to the planned future time of realization by selling the investment. This rate reflects the economic opportunity cost of the investor and is usually the yield on a national government security. For example, for an investor in the U.S. the discount rate could be the yield on a U.S. Government bond with an appropriate term to maturity. The longest term for a U.S. government bond is 30 years.

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