Examlex
A market for pollution permits can efficiently allocate the right to pollute.
Present Value
The current value of future money or cash flows, determined by applying a specific rate of return.
Discount Rate
The interest rate used in discounted cash flow (DCF) analysis to determine the present value of future cash flows.
Stated Rate
The interest rate expressed in the terms of a loan or bond agreement, not necessarily reflecting the effective interest rate after considering fees or compounding.
Market Rate
The prevailing interest rate available in the marketplace on investments or loans, subject to fluctuation based on supply and demand.
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