discount rate

discount rate
discount rate n
1: the interest on an annual basis deducted in advance on a loan
2: the interest levied by the Federal Reserve for advances and rediscounts

Merriam-Webster’s Dictionary of Law. . 1996.

discount rate
n.
(1) A rate used for discounting negotiable instruments purchased by banks in exchange for money or credit.
(2) The minimum interest rate that Federal Reserve banks charge their members for loans.

The Essential Law Dictionary. — Sphinx Publishing, An imprint of Sourcebooks, Inc. . 2008.


discount rate
the interest rate used to calculate the NPV of future cash flows.

Practical Law Dictionary. Glossary of UK, US and international legal terms. . 2010.

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