Discount and Hurdle rate: Difference between pages

Revision as of 13:59, 16 November 2020

The rate of return, normally the company's weighted average cost of capital, used for determining the viability of an investment or project.

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-# ''Noun.'' In relation to a discount instrument, the difference between the current market price and the redemption amount.
+The rate of return, normally the company's weighted average cost of capital, used for determining the viability of an investment or project.
-# A coupon bond trading in the market ''at a discount'' has a market value less than its par value.
-# A foreign currency trading ''at a discount'' in the forward foreign exchange market is weaker in the forward market than in the spot market.
-# ''Verb.'' In relation to a money amount, make smaller.  For example, to discount back a future cashflow to a (smaller) present value.
-# ''Verb.'' In relation to financial instruments, to exchange an instrument with a future maturity date, for a 'discounted' market value today.  Today's market value being smaller than the redemption amount (receivable at maturity) by the amount of the discount.
 == See also ==
-* [[Coupon bond]]
+* [[Cost of capital]]
-* [[Discount instruments]]
 * [[Discount rate]]
-* [[Premium]]
+* [[Net present value]]
-* [[Spot market]]
+* [[Internal rate of return]]
+[[Category:The_business_context]]
+[[Category:Corporate_finance]]
+[[Category:Investment]]