Discount factor - Revision history

imported>Doug Williamson: Add links.

2022-07-07T00:03:59Z

Add links.

2021-02-02T22:47:47Z

Add alternative notation.

2019-06-26T14:31:13Z

Layout.

← Older revision		Revision as of 14:31, 26 June 2019
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			''Financial maths.''

	'''1.'''		'''1.'''

	(DF).		(DF).

	~~The~~ number less than one ~~which~~ we multiply a single future cash flow by, to work out its present value as:		A discount factor is a number less than one, that we multiply a single future cash flow by, to work out its present value as:

	PV = DF x future cashflow.		PV = DF x future cashflow.

2018-02-21T11:33:06Z

Categorise.

← Older revision		Revision as of 11:33, 21 February 2018
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	* [[Factors]]		* [[Factors]]
	* [[Present value]]		* [[Present value]]

			[[Category:Cash_management]]
			[[Category:Liquidity_management]]

2017-05-28T09:22:19Z

Link with Expected credit loss page.

2016-12-18T21:19:37Z

Update.

← Older revision		Revision as of 21:19, 18 December 2016
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	'''2.'''		'''2.'''

	~~The~~ yield or cost of capital used for the purpose of calculating Discount Factors, as defined above.		Historically, the yield or cost of capital used for the purpose of calculating Discount Factors, as defined above.

	For example the 6% rate applied in definition 1. above.		For example the 6% rate applied in definition 1. above.

2016-11-16T13:49:39Z

Removed link

← Older revision		Revision as of 13:49, 16 November 2016
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	* [[Certificate in Treasury Fundamentals]]		* [[Certificate in Treasury Fundamentals]]
	* [[Certificate in Treasury]]		* [[Certificate in Treasury]]
	* [[CertFMM]]
	* [[Compounding effect]]		* [[Compounding effect]]
	* [[Compounding factor]]		* [[Compounding factor]]

2016-11-16T12:07:42Z

Added link

2016-10-08T07:29:38Z

Update.

← Older revision		Revision as of 07:29, 8 October 2016
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	~~(DF)~~.		'''1.'''

			(DF).

	~~'''1.'''~~		The number less than one which we multiply a single future cash flow by, to work out its present value as:

	~~Strictly, the~~ number less than one which we multiply a single future cash flow by, to work out its present value as:

	PV = DF x future cashflow.		PV = DF x future cashflow.
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	'''2.'''		'''2.'''

	~~Loosely,the~~ yield or cost of capital used for the purpose of calculating Discount Factors.		The yield or cost of capital used for the purpose of calculating Discount Factors, as defined above.

	For example the 6% rate applied in definition 1. above.		For example the 6% rate applied in definition 1. above.

2016-01-15T19:09:14Z

Spacing.

← Older revision		Revision as of 19:09, 15 January 2016
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	The periodic discount factor is calculated from the periodic [[yield]] as:		The periodic discount factor is calculated from the periodic [[yield]] as:

	DF = ( 1 + periodic yield )<SUP>-n</SUP>		DF = (1 + periodic yield)<SUP>-n</SUP>


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	Discount factor = ( 1 + r )<sup>-n</sup>		Discount factor = (1 + r)<sup>-n</sup>

	= 1.06<sup>-1</sup>		= 1.06<sup>-1</sup>
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	The number of periods delay increases to 2.		The number of periods delay increases to 2.

	Discount factor = ( 1 + r )<sup>-n</sup>		Discount factor = (1 + r)<sup>-n</sup>

	= 1.06<sup>-2</sup>		= 1.06<sup>-2</sup>