Business / Real Estate / Discount Rate: 1. An annual competitive rate of return on total invested capital necessary to compensate the investor for the risks inherent in a particular investment. 2. The rate at which the Federal Reserve lends money to its eligible banks. These are short-term loans to fulfill immediate cash needs, not supplement the banks capital. Thus, the discount rate is not a cost of funds indicator but more of a signal to the banking community.
Discount Verb Synonyms: diminish, lessen, minimize, detract from
Discount Adjective Synonyms: reduce, mark down, deduct, lower, take or knock off
Rate Noun Synonyms: rank, grade, class, classify, evaluate, estimate, calculate, compute, count, reckon, judge, gauge, assess, appraise, measure
Rate Verb Synonyms: measure, pace, gait, speed, velocity, clip
Business / Finance / All Equity Rate: The discount rate that reflects only the business risks of a project, distinct from the effects of financing. MORE
Business / Finance / Internal Rate Of Return (IRR): Dollar-weighted rate of return. Discount rate at which net present value (NPV) investment is zero. The rate at which a bond's future cash flows, discounted back to today, equal its price. MORE