# discount rate

From Longman Dictionary of Contemporary Englishdiscount rateˈdiscount ˌrate noun [countable usually singular] 🔊 🔊 the interest rate that a country’s central bank charges to other banks

Examples from the Corpus

discount rate• Capital costs are expressed as annual equivalents assuming a seven year lifespan for the equipment and a 5% discount rate.• The formal agreement between the two parties is based purely upon an agreed discount rate.• The central bank is expected to cut its discount rate this quarter, traders said.• Interest rates would then rise as the central bank increased its discount rate to discourage borrowing and the demands for legal tender.• However, we will disregard this refinement for the remainder of the chapter and assume that the discount rate is constant.• The central bank trimmed the discount rate to a record low 0. 5 percent in September.From Longman Business Dictionarydiscount rateˈdiscount rateFINANCEBANKING1the rate charged by a CENTRAL BANK for lending to other banks. Changes in this rate will influence interest rates in the economy as a wholeThe central bank increased its discount rate to discourage borrowing.2the rate charged by a bank to DISCOUNT a BILL OF EXCHANGE3the interest rate used to calculate the DISCOUNTED CASH FLOW from an investmentAt a discount rate of 20%, which project should be accepted? → rate
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