Discount rate/Definition: Difference between revisions

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(i) The percentage by which the current  value of an asset (to a person or to a commercial organisation)    exceeds its value in a year's time. For a person, it is equal to  that person’s   marginal rate of substitution between consumption in the two successive years.  For a commercial  organisation, it is  equal to  that  organisation’s ''cost of capital''. (ii) The rate at which banks may borrow at their central bank's ''discount window''.
(i) The percentage by which   current  value  exceeds value in a year's time.  (ii) The rate at which banks may borrow at their central bank's [[discount window]].

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A definition or brief description of Discount rate.

(i) The percentage by which current value exceeds value in a year's time. (ii) The rate at which banks may borrow at their central bank's discount window.

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