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Discount factor is the factor determining future cash flow, but multiplying the cash flow to obtain present value. Discount rate is used in calculations to equal the cost of capital.

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Q: What is the difference between discount factor and discount rate?
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What is the difference between federal funds rate and the discount rate?

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Difference between interest rate and discount rate?

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What is the difference between the coupon rate and discount rate in financial investments?

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What is a discount?

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What is the difference between the discount rate and the rate of return?

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What is a blind discount?

A blind discount is defined as the difference in cost between the listed cash price for equipment and the reduced financed amount. It can also be the difference between the list price of a ca and a lower interest rate.


What is the relationship between wacc and discount rate of return?

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What is the difference between the hurdle rate and the discount rate, and how do they impact investment decisions?

The hurdle rate is the minimum rate of return required for an investment to be considered worthwhile, while the discount rate is used to calculate the present value of future cash flows. The hurdle rate influences whether an investment is accepted or rejected, while the discount rate affects the valuation of the investment. Both rates play a crucial role in determining the feasibility and profitability of investment decisions.


Is the straight-line amortization or effective interest rate method better?

This method is preferred over the straight-line method of amortizing bond discount or bond premium. Amortization of a bond discount or premium is the difference between the interest expense and the nominal interest payment. The amortization entry is: Interest Expense (effective interest rate x carrying value) Cash (nominal interest rate x face value) Bond Discount (for the difference)


What is the difference between the interest rate and discount rate, and how do they impact the overall cost of borrowing?

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