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discount rate
noun
- the rate of interest charged in discounting commercial paper.
- the interest rate charged by Federal Reserve Banks on loans to their member banks, usually against government securities as collateral.
- the rediscount rate.
discount rate
- The rate of interest charged by the Federal Reserve System on loans it makes to the banking system.
Notes
Word History and Origins
Origin of discount rate1
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Example Sentences
The agency also applies discount rates that place less value on the future benefits of controlling pollution than the present ones, according to the attorneys, who say these practices discriminate against children.
The agency also applies discount rates to future costs and benefits — a practice adopted in the 1980s during the Reagan administration, she said.
That changed on Black Friday, when the discount rate began to peak at 30% in the U.S., he said.
The net loss was also impacted by accounting for its underfunded retirements caused by actuarial revaluation and discount rate changes.
The 10-year yield, which can hit stock prices when it rises by varying the discount rate investors use to value companies' future cashflows, has climbed from around 4% in early August.
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