discount rate
noun
1
: the interest on an annual basis deducted in advance on a loan
2
: the charge levied by a central bank for advances and rediscounts
Examples of discount rate in a Sentence
Recent Examples on the Web
While central banks usually exclude volatile food and energy prices when considering discount rate changes, bankers may need to start pricing climate change into their interest rate models.
—
Erik Kobayashi-Solomon, Forbes, 21 Jan. 2025
Stock prices are often valued based on the present value of future earnings or cash flows, discounted by interest rates (discount rate).
—Michael Khouw, CNBC, 16 Jan. 2025
Simply put, as rates increase, the discount rate also rises, pushing up yields along the risk-free curve.
—Michael Gfoeller and David H. Rundell, Newsweek, 15 Jan. 2025
Investor time horizons tend to be shorter and grounded by the time value of money, discounting the future value of an investment back to the present using some discount rate and likelihood of payoff.
—Martin Jarzebowski, Forbes, 9 Jan. 2025
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Erik Kobayashi-Solomon, Forbes, 21 Jan. 2025
Stock prices are often valued based on the present value of future earnings or cash flows, discounted by interest rates (discount rate).
—Michael Khouw, CNBC, 16 Jan. 2025
Simply put, as rates increase, the discount rate also rises, pushing up yields along the risk-free curve.
—Michael Gfoeller and David H. Rundell, Newsweek, 15 Jan. 2025
Investor time horizons tend to be shorter and grounded by the time value of money, discounting the future value of an investment back to the present using some discount rate and likelihood of payoff.
—Martin Jarzebowski, Forbes, 9 Jan. 2025
See all Example Sentences for discount rate
Dictionary Entries Near discount rate
Cite this Entry
“Discount rate.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/discount%20rate. Accessed 29 Jan. 2025.
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