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discount rate

The correct spelling is discount rate.

How to pronounce discount rate

noun

Say it like: Dis-cow-nt -rat-e

The correct spelling is discount rate. An interest rate that a central bank charges depository institutions that borrow reserves from it.

Usage Examples

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Definition

noun

  1. 1.An interest rate that a central bank charges depository institutions that borrow reserves from it.
  2. 2.The interest rate used to discount future cashflows of a financial instrument; the annual interest rate used to decrease the amounts of future cashflows to yield their present value.

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