Discount and Hurdle rate: Difference between pages

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1.
The rate of return, normally the company's weighted average cost of capital, used for determining the viability of an investment or project.
 
''Noun.''
 
In relation to a discount instrument, the difference between the current market price and the redemption amount.
 
 
2.
 
A coupon bond trading in the market ''at a discount'' has a market value less than its par value.
 
 
3.
 
A foreign currency trading ''at a discount'' in the forward foreign exchange market is weaker in the forward market than in the spot market.
 
 
4.
 
''Verb.''
 
In relation to a money amount, make smaller.  For example, to discount back a future cashflow to a (smaller) present value.
 
 
5.
 
''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 ==
== See also ==
* [[Coupon bond]]
* [[Cost of capital]]
* [[Discount instruments]]
* [[Discount rate]]
* [[Discount rate]]
* [[Premium]]
* [[Net present value]]
* [[Spot market]]
* [[Internal rate of return]]
 
[[Category:The_business_context]]
[[Category:Corporate_finance]]
[[Category:Investment]]

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.


See also