Examlex
What is the expected payoff on a $2,000 sale that has a 30% profit margin if there is a 20% probability of default?
Discount Rate
The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window. Alternatively, it can represent the rate used to discount future cash flows in present value calculations.
Present Value
The today's worth of future money or cash flow sequences, when a certain rate of return is applied.
Discount Rate
In finance, the discount rate is the interest rate used to determine the present value of future cash flows.
Present Value
A future sum of money or cash flows' value at present, applying a specific rate of return.
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