Discount rate - Finance Records
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Topic: Discount rate


  
 Discount rate - Wikipedia, the free encyclopedia
The discount rate is the value used in accounting procedures to determine the present value of future cash flows arising from a project, ie the discounted value of all future cashflows.
The discount rate is the interest rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank through the discount window.
Typically, the discount rate is arrived at by beginning with the appropriate interest rate for the length of time in question, then adding an additional sum to account for risk.
http://en.wikipedia.org/wiki/Discount_rate   (535 words)

  
 Discount Rate Morgages at www.mortgageflugger.com - Discounted Mortgages with Remortgages0800
Of the East Widow cost is also the rate of discount of the future enterprise utilities defines as the rate of discount that equals the present value of the flows of box to From a theoretical point of view, the rate of discount to apply is the cost.
The rate of discount (that is what determines the preferences; that is to say, which the rate of discount of the future costs of the today activities allows higher it is the smaller rate of discount will be the relevance of the Rates of Discount and Interest.
The Rate of Discount Revisited the Rate of Discount Revisited the selection of an appropriate rate of discount is an important election in the evaluation of projects of investment, as much deprived as social.
http://www.mortgageflugger.com/discount-rate-morgages.html   (759 words)

  
 NCEDR Tools - Other Tools - Cost-Benefit Analysis Modules
In principle, this rate is the rate that equilibrates the demand for savings by investors and the supply of savings from savers who refrain from spending all of their income on current consumption.
The discount rate is the rate by which benefits that accrue in some future time period must be adjusted so that they can be compared with values in the present.
Because of corporate income taxes and personal income taxes, the rate of return on a private investment is greater than the after tax return.
http://www.ncedr.org/tools/othertools/costbenefit/module4.htm   (1686 words)

  
 Discount Rate
Discount rate - the rate of interest that is charged to a member bank on a loan from the Fed.
http://www.speculativebubble.com/terms/discountr.shtml   (20 words)

  
 discount rate - definition of discount rate in Encyclopedia
The interest rate used in accounting procedures to determine the present value of future cash flows, ie the discounted value of an amount of cash at some future date.
The interest rate that an eligible depository institution (such as a bank) is charged to borrow short term funds directly from the central bank.
The concept of a discount rate is an old one - the future is uncertain, and having something now is worth more than (maybe) having it later.
http://encyclopedia.laborlawtalk.com/discount_rate   (165 words)

  
 DISCOUNT RATE
Discount rates are used when comparing alternatives that differ in the time-character of their flows of costs and benefits; to compare them, costs and benefits are discounted to the same year.
This assumption requires that, in order to determine the present value of future sums, the analyst use an interest rate to discount these future sums.
There are no clear-cut rules as to what an appropriate discount rate should be in a given case.
http://pespmc1.vub.ac.be/ASC/DISCOU_RATE.html   (131 words)

  
 Discount rate mortgage
Discount mortgages are more suitable for people who prioritise low initial payments at the expense of higher rates later on; for example first time buyers, whose income isn't so high who want to have some spare cash to spend on furnishing their new home.
A discount rate mortgage offers a percentage discount from the lender's normal variable rate for a set period of time.
When the standard variable rate fluctuates, the discount will remain fixed, however, the amount of discount and the period will vary from deal to deal.
http://www.alexanderhall.co.uk/mortgages/types/discount-rate-mortgage.html   (240 words)

  
 Discount Rate Mortgage - online mortgage rate advice call 0800 801079
Discount rate mortgages can be recommended for those where it is important to keep their initial payments as low as possible.
For example, if you have a two year discount, you may get a discount of 1% of the standard variable rate, but a one year discount could be 2%.
This means that whatever the variable rate is during the discount rate period, the borrower will pay the variable rate less the discount percentage, thus making a saving.
http://www.mwgb.co.uk/discounted_rate_mortgages.html   (515 words)

  
 The Federal Reserve - Discount Rate
The marked similarity between the discount rates and the Treasury bill interest rates (a market-determined, short-term interest rate) is an example of short-term interest rates responding to changes in the discount rate.
The discount rate for primary credit, the primary credit rate, is above the interest rates for similar loans in the free market, while the discount rate on secondary credit is even higher.
The Discount Rate is the interest rate that banks pay to the Federal Reserve for borrowing money from it, and the only interest rate over which the Federal Reserve has direct control.
http://userpages.umbc.edu/~joelg2/fed/drate.html   (1039 words)

  
 Discount Rate Mortgages.Different mortgage alternatives
A discount mortgage has an interest rate where a discount is applied to the lender's standard variable rate for a set period, usually from six months to several years.
At the end of the discounted period your mortgage payments will suddenly increase as the mortgage reverts to the lender's standard variable rate.
As the lender's standard variable rate moves up and down, so the discounted rate moves up and down by the same amount, with the differential between the two remaining the same.
http://www.ukcitymedia.co.uk/mortgages/discount_rate_mortgages.php   (293 words)

  
 UK Mortgage Guide - Discount Interest Rate Explained
The discount rate, otherwise known as a discount variable rate or discounted rate, is a variation on the standard variable rate.
After the discounted period ends the borrower will be switched to the lenders standard variable rate.
Usually the greater the discount the shorter the discounted period will be.
http://www.ukmortgageinfo.com/interest/discount.htm   (253 words)

  
 FRBSF: Discount Rate
The interest rate charged on loans from the SLF is 150 basis points higher than the Federal Open Market Committee's intended federal funds rate.
The Federal Reserve Bank expresses no opinion on the applicability of the basic discount rate or surcharge to any transaction governed by a Federal or state usury or usury preemption statute.
The following is a list of rates of interest on our advances to, and discounts for, member banks and other depository institutions under Sections 13 and 13a of the Federal Reserve Act.
http://www.frbsf.org/banking/data/discount   (210 words)

  
 FRB: H.15 Release--Selected Interest Rates--March 6, 2006
Prime is one of several base rates used by banks to price short-term business loans.
Historical series for the rate on adjustment credit as well as the rate on primary credit are available at www.federalreserve.gov/releases/h15/data.htm.
The daily effective federal funds rate is a weighted average of rates on brokered trades.
http://www.federalreserve.gov/releases/H15/Current   (725 words)

  
 FRB: Monetary Policy, the Discount Rate
The discount rate is the interest rate charged to commercial banks and other depository institutions on loans they receive from their regional Federal Reserve Bank's lending facility--the discount window.
The discount rate charged for primary credit (the primary credit rate) is set above the usual level of short-term market interest rates.
The discount rate for seasonal credit is an average of selected market rates.
http://www.federalreserve.gov/monetarypolicy/discountrate.htm   (638 words)

  
 CCH Business Owner's Toolkit Discount Rate
If you are planning to finance the purchase and you know what the interest rate on the loan would be, you can use the rate charged on the loan as the cost of borrowing for the project.
For example, if the rate on your loan was 8.5 percent and your marginal combined federal and state income tax rate was 40 percent, your tax-adjusted interest rate on the loan would be 5.1 percent (1- 0.40 = 0.60; 0.085 x 0.60 = 0.051).
So, you can multiply the nominal interest rate on the loan by one minus the marginal tax rate for the business, to arrive at the tax-adjusted interest rate.
http://www.toolkit.cch.com/text/P06_6540.asp   (460 words)

  
 discount rate --  Encyclopædia Britannica
This charge originally was an actual discount (an interest charge held out from the amount loaned), but the rate is now a true interest charge, even though the term discount rate is still used.
The 12 specialist banks known as discount houses have the longest history as money market institutions; they have their origin in the London bill broker who in the early 19th century made the market in inland commercial bills.
Although the governmental budget is primarily concerned with fiscal policy (defining what resources it will raise and what it will spend), the government also has a number of tools that it can use to affect the economy through monetary control.
http://www.britannica.com/eb/article-9030619   (788 words)

  
 discount rate - definition of discount rate by the Free Online Dictionary, Thesaurus and Encyclopedia.
A change in the discount rate is usually followed by similar changes in the interest rates charged by banks and money markets.
The interest rate charged by a central bank on loans to its member banks.
interest rate, rate of interest - the percentage of a sum of money charged for its use
http://www.thefreedictionary.com/discount+rate   (244 words)

  
 Selecting the Discount Rate
The discount rate is the interest rate at which it is assumed plaintiffs will invest their awards in order to replace their future streams of losses.
As was explained in the first issue of this newsletter, it is the "real" rate of interest - or observed rate of interest net of the expected rate of inflation - which most financial experts prefer to use for this purpose.
The historical approach: The approach which, implicitly, has been favoured by those provinces which have mandated their discount rates is to assume that the average rate which has been observed in the past will continue into the future.
http://www.economica.ca/ew13p3.htm   (1346 words)

  
 social discount rate
The real discount rate (r) approximately equals the nominal discount rate (i) minus the expected rate of inflation (m), and is calculated as:
Many suggest that a discount rate calculated purely on market values is inappropriate to use when considering public expenditures and argue that we should use a social discount rate.
A common approach to estimation the expected rate of inflation is to assume that real long-term bond yields will remain stable and to deduct this yield from the current long-term bond yield.
http://www.rri.wvu.edu/WebBook/Garrett/popup/box6.htm   (355 words)

  
 Discount Rate
Assuming a discount rate of 10%, the $1,000 in a year's time would be the equivalent of $909.09 to you today (1000/[1.00 + 0.10]).
The Federal funds discount rate is one of two interest rates the Fed sets, the other being the overnight lending rate, or the Fed funds rate.
The interest rate that an eligible depository institution is charged to borrow short-term funds directly from a Federal Reserve Bank.
http://www.investopedia.com/terms/d/discountrate.asp   (309 words)

  
 Discount Rate
For example, the hidden assumption (not often appreciated) when discounting the type of cash flow forecasts, is that cash flows arrive at the end of each period.
The rate of inflation -which calculates the present value in constant dollars.
For real accuracy use this adjusted discount formula for calculating the present value of cash flows when cash flows are received throughout the period:
http://www.exceltemplates.com/dictionary/discount-rate.php   (278 words)

  
 Discount Window - Federal Reserve Bank of New York
The Discount Window functions as a safety valve in relieving pressures in reserve markets; extensions of credit can help alleviate liquidity strains in a depository institution and in the banking system as a whole.
Primary credit is available to generally sound depository institutions on a very short-term basis as a backup rather than a regular source of funding.
Under the program enacted in 2003, Reserve Banks establish the primary credit rate at least every 14 days, subject to review and determination of the Board of Governors.
http://www.ny.frb.org/banking/discountwindow.html   (280 words)

  
 discount rate. The New Dictionary of Cultural Literacy, Third Edition. 2002
It is likely to lower the discount rate during economic downturns to stimulate investment and raise it during upswings to check inflation.
The rate of interest charged by the Federal Reserve System on loans it makes to the banking system.
‡ Because the Federal Reserve System lends money to the banking industry, one mechanism it has for regulating interest rates is to vary the discount rate—that is, to make the money that banks borrow relatively more or less expensive.
http://www.bartleby.com/59/18/discountrate.html   (174 words)

  
 Discount rate
As the lower interest rate, one may use the the current cost of capital or current return rate on high quality bonds.
When choosing interest rates for analyses, be sure to find out if the organization has established an policy or preferences for choosing DCF discount rates.
The interest rate used in calculating discounted cash flows (DCFs).
http://www.solutionmatrix.com/discount-rate.html   (284 words)

  
 discount rate Definition
The discount rate is one of the two interest rates set by the Fed, the other being the Federal funds rate.
The rate at which member banks may borrow short term funds directly from a Federal Reserve Bank.
Learn how the economy can be influenced by the US government through fiscal and monetary policy.
http://www.investorwords.com/1478/discount_rate.html   (262 words)

  
 Federal Reserve Bank of Minneapolis - Discount Rates
The discount rates are the interest rates that depository institutions will be charged for credit.
For complete information on the new discount rates see the Federal Reserve Discount Window site.
*(10/29/42 to 4/25/46: preferential rate of 1/2% on 15-day paper secured by short-term govts.
http://woodrow.mpls.frb.fed.us/research/data/us/disc.cfm   (147 words)

  
 Discount-Rate Cuts James Surowiecki
Trimming the discount rate, then, was a way of signaling the Fed's resolve, which itself should help consumer and business confidence.
What investors may have seized upon was the Fed's decision to also trim the discount rate--the rate banks charge each other for overnight lending--by a quarter point, to 4.50 percent.
The cut is therefore a double-edged sword for the market, since it suggests both that corporate profits will come under continued pressure next year and that the Fed is on the case to keep that pressure from becoming too great.
http://www.slate.com/id/1001882   (477 words)

  
 PG Calc Incorporated - Discount Rate Information
The IRS discount rate floats monthly and is used in calculating the deduction for all planned gifts except pooled income fund gifts.
When calculating the deduction earned by a planned gift, one may use the discount rate for the month of the gift or for either of the two months prior to the month of the gift.
Most clients enter the current IRS discount rate in Planned Giving Manger, Mini Manager, or Gift Annuity Manager when it is announced each month or when prompted by the software.
http://www.pgcalc.com/drate   (241 words)

  
 Banana Plantation Discount Rate
My feeling tells me or if I were to invest in such think the discount rate I'll use will be around 20% but I don't have such thing as a beta to clearify the analysis.
So far so good, the problem I've having is that I can get a discount rate in which I feel confortable to valuate the business.
The structure I've proposed is first the US Long Bond rate as the free risk rate, then I manage to calculated the Costa Rica Risk through our Class A Brady Bonds.
http://www.contingencyanalysis.com/archive/archive3/00000051.htm   (181 words)

  
 Long Term Loan Discount Rate Bangladesh
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http://sukysama.t35.com/long/term-loan-discount-rate-bangladesh.html   (565 words)

  
 discount rate - OneLook Dictionary Search
Discount Rate : AMEX Dictionary of Financial Risk Management [home, info]
Phrases that include discount rate: risk adjusted discount rate
discount rate : Terms related to the Federal Reserve, banking and economics [home, info]
http://www.onelook.com/?w=discount+rate&ls=a   (349 words)

  
 discount rate
the interest rate charged by Federal Reserve Banks on loans to their member banks, usually against government securities as collateral.
the rate of interest charged in discounting commercial paper.
http://www.infoplease.com/dictionary/discount+rate   (46 words)

  
 The Federal Reserve Bank Discount Window & Payments System Risk Website
These changes will impact the processing of interest and redemption payments for securities issued by government-sponsored enterprises (GSEs) and certain international organizations.
The Federal Open Market Committee decided today to raise its target for the federal funds rate by 25 basis points to 4.50%.
Effective October 1, 2005, depository institutions wishing to pledge definitive municipal securities to a Federal Reserve Bank for Discount Window or Payments System Risk purposes must do so through an approved third-party custodian.
http://www.frbdiscountwindow.org   (183 words)

  
 Serving Your Home Services for Your Home Medical Equipment Discount Rate
The Medical Equipment Discount Rate option will be effective at the beginning of the billing period in which the request is received and approved.
Qualified customers that participate in MED Rate will have discounts of:
> Services for Your Home > Medical Equipment Discount rate
http://www.smud.org/residential/services/med_rate.html   (297 words)

  
 Cornell University:FASB Discount Rate
The Financial Accounting Standards Board (FASB) Discount Rate, which is the interest rate applied for discounting future cash flows, is based on the interest environment at June 30 of the previous fiscal year for long-term, high-quality bonds.
This rate is determined by the Division of Financial Affairs.
http://www.accounting.cornell.edu/FASB.cfm   (47 words)

  
 Figures at a Glance (Updated every business day)
Nov.11, 2002 The revision of the format of "Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations"
Uncollateralized Overnight Call Rate (Updated every business day)
6, 2002 The revision of the publication way of "Sources of Changes in Current Account Balances at the Bank of Japan and Market Operations (every business day)" and "Uncollateralized overnight call rates (average)"
http://www.boj.or.jp/en/rate.htm   (150 words)

  
 Floating Discount Rate as supplied by EagleTraders.com
A central bank's DISCOUNT RATE which instead of being fixed at a particular level by the central bank in accordance with its prevailing MONETARY POLICY, as one of the tools of control of such policy, varies pursuant to the changes in a key MONEY MARKET rate, such as that on offerings of Treasury bills.
the discount rate of the BANK OF CANADA from 1956 to 1962 floated 0.25% above the Treasury bill rate.
An alleged advantage of a floating discount rate of the central bank is the fact that it keeps in line with prevailing money rates, instead of being either above or below the market.
http://www.eagletraders.com/advice/securities/floating_discount_rate.htm   (190 words)

  
 Discount hotels Melbourne cheap Motels and Apartments
They guarantee that these rates will not be beaten anyway, anywhere - not even by calling these hotels last minute.
All the hotels, serviced apartments and motels on discount stay guarantee that the rates advertised on this site are the very best rates on the internet.
FREE security car parking, exclusive use of pool, spa and gym equipment and Privilege Card discounts at local retailers.
http://www.discountstay.com.au   (4757 words)

  
 Legal Definition of Discount Rate
DISCOUNT RATE - The interest rate used in discounting future cash flows; also called the "capitalization rate."
Court, Business and Personal Forms for all Situations and Locations
The 'Lectric Law Library's Lexicon On * Discount Rate *
http://www.lectlaw.com/def/d057.htm   (48 words)

  
 Las Vegas Hotel Discount Rate
Orangeburg Times Democrat, SC 989 in 2003, up from 981 in 2002, helping the state net the best improvement rate...
How you can save for a better life
000 taken out over 20 years at an interest rate of...
http://www.haxwax-rates.com/las-vegas-hotel-discount-rate.html   (630 words)

  
 AskOxford: discount rate
1 a minimum interest rate set by the US Federal Reserve for lending to other banks.
2 a rate used for discounting bills of exchange.
http://www.askoxford.com/concise_oed/discountrate?view=uk   (108 words)

  
 Schools and Libraries Program - USAC
While schools and libraries apply for these discounts, USAC works in conjunction with service providers to make sure these discounts are passed on to program participants.
The Schools and Libraries Program of the Universal Service Fund makes discounts available to eligible schools and libraries for telecommunication services, Internet access, and internal connections.
The Schools and Libraries Program reimburses telecommunications, Internet access, and internal connections providers for discounts on eligible services provided to schools and libraries.
http://www.sl.universalservice.org   (157 words)

  
 RateEmpire.com-discount rate
This is the interest rate charged by the U.S. Federal Reserve, the nation’s central bank, for loans to member banks.
OR The interest rate charged by a financial institution for buying a note receivable.
The Fed alters rates to increase or decrease the growth of the nation’s economic output.
http://www.rateempire.com/indexes/discountrate.html   (107 words)

  
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 Melbourne hotels, motels, apartments accommodation at discount rates
Therefore the rate that you pay will depend on how long you stay.
Fast and secure accommodation booking service at the best possible rate
For example, you may pay less per night if you stay 5 nights as against a 2 night stay; whereas you may pay even less if you stay longer.
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 CheapTickets: Find Cheap Airline Tickets, Discount Hotel Rooms, Vacation Packages, Car Rentals, Travel Deals at ...
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Search by city, point of interest, or airport
CheapTickets: Find Cheap Airline Tickets, Discount Hotel Rooms, Vacation Packages, Car Rentals, Travel Deals at CheapTickets
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