Discounting

Business / Real Estate / Discounting: To sell at a reduced value, the difference between face value and cash value. Some companies specialize in buying mortgages and real estate contracts (often referred to as paper) at a discount. Often the original lender, wanting to cash out on the loan, will thus sell the mortgage at the current published mortgage discount rate. If the discount rate is 12 percent, for example, the lender could sell a $100,000 mortgage at 88 percent of its worth ($88,000 or 12 percent below par).

Discounting The News

Business / Finance / Discounting The News: Calculating the present value of a future amount. Discounting is opposite to compounding. MORE

Discounting A Note Receivable

Business / Accounting / Discounting A Note Receivable: The process of the payee's selling notes to financial institution for less than the maturity value. 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

Links
Home
Glossary
Thesaurus