Discount Rate

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.

Other Words for Discount

Discount Adjective Synonyms: reduce, mark down, deduct, lower, take or knock off
Discount Verb Synonyms: diminish, lessen, minimize, detract from
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Other Words for Rate

Rate Verb Synonyms: measure, pace, gait, speed, velocity, clip
Rate Noun Synonyms: rank, grade, class, classify, evaluate, estimate, calculate, compute, count, reckon, judge, gauge, assess, appraise, measure
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All Equity Rate

Business / Finance / All Equity Rate: The discount rate that reflects only the business risks of a project, distinct from the effects of financing. MORE

Internal Rate Of Return (IRR)

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

Discounted Cash Flow

Business / Real Estate / Discounted Cash Flow: Used in measuring the return from a real estate investment, the present value of a future income stream as determined by a given discount rate. MORE

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