calculate a discount
1discount yield — The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: ( discount divided by the face value of the security)… …
2Discount Yield — is a measure of a bond s percentage return. Discount yield is most frequently used to calculate the yield on short term bonds and treasury bills sold at a discount. This yield calculation uses a 30 day month and 360 day year to simplify… …
3discount 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. Merriam Webster. 1996 …
4discount rate — The interest rate charged on loans by the Federal Reserve Bank. Chicago Board of Trade glossary The interest rate charged by the Federal Reserve to its member banks (banks which belong to the Federal Reserve System) for funds they borrow. This… …
5Discount rate — The interest rate that the Federal Reserve charges a bank to borrow funds when a bank is temporarily short of funds. Collateral is necessary to borrow, and such borrowing is quite limited because the Fed views it as a privilege to be used to meet …
6Discount Note — A short term debt obligation issued at a discount to par. Discount notes are similar to zero coupon bonds and Treasury bills and are typically issued by government sponsored agencies or highly rated corporate borrowers. Discount notes do not make …
7Social discount rate — is a measure used to help guide choices about the value of diverting funds to social projects. It is defined as “the appropriate value of r to use in computing present discount value for social investments” [Gruber, Jonathan (2007). Chapter 8:… …
8Original issue discount — (OID) is a type of interest that is not payable as it accrues. OID is normally created when a debt, usually a bond, is issued at a discount. In effect, selling a bond at a discount converts stated principal into a return on investment, or… …
9straight discount — The rate applied to the face value of the promissory note to calculate present value without compounding. For example, a note with a face value in three years of 100, with a straight discount of 10% per annum has a present value of 70. Bloomberg… …
10Valuation using multiples — is a method for determining the current value of a company by examining and comparing the financial ratios of relevant peer groups, also often described as comparable company analysis (or comps). The most widely used multiple is the price… …
