# Discount/Interest Rate

- The discount rate is used to determine the present value of future or past cash flows. The rate accounts for inflation and the potential earning power of money.

*Energy terms .
2014.*

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**discount interest**— interest at a beginning of the loan. For example if you take out a one year loan of $100 at a discount interest rate of 10%, you would receive $90 at the outset. Bloomberg Financial Dictionary … Financial and business terms**Interest rate parity**— is a no arbitrage condition representing an equilibrium state under which investors will be indifferent to interest rates available on bank deposits in two countries.[1] Two assumptions central to interest rate parity are capital mobility and… … Wikipedia**Interest rate cap and floor**— Interest rate c An interest rate cap is a derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price. An example of a cap would be an agreement to receive a payment for… … Wikipedia**Interest rate swap**— An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They… … Wikipedia**interest rate**— noun the percentage of a sum of money charged for its use (Freq. 1) • Syn: ↑rate of interest • Hypernyms: ↑rate, ↑charge per unit • Hyponyms: ↑discount rate, ↑ … Useful english dictionary**Interest rate**— Finance Financial markets Bond market … Wikipedia**Interest Rate Differential - IRD**— A differential measuring the gap in interest rates between two similar interest bearing assets. Traders in the foreign exchange market use interest rate differentials (IRD) when pricing forward exchange rates. Based on the interest rate parity, a … Investment dictionary**discount 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 … Law dictionary**discount rate**— discount .rate n [C usually singular] the interest rate that a country s ↑central bank charges to other banks … Dictionary of contemporary English**Discount rate**— For the interest rate charged to banks for borrowing short term funds directly from the Federal Reserve, see discount window. For the fees charged to merchants for accepting credit cards, see Discount Rate under Merchant Account. For discount… … Wikipedia