The basic problem is the ... Marty Weitzman, for example, has long made the argument that the greater the future uncertainty we face the lower should be the discount rate (that's applied to ...

The loans are used by financial institutes to cover any cash shortfalls, head off any liquidity problems ... discount rate refers to the interest rate used to determine the present value. For ...

That interpretation, however, is a vestige of the way the discount rate is constructed. In reality, the data do not support that conclusion. A simple example illustrates the flaw in this reasoning.

The problem is that depending on ... get if you would invest in Government bonds for example) + a risk premium. In other words, the discount rate is how much you should earn for your investment ...

States, according to a budget reform group, are often guilty of exacerbating the high discount rate problem by not making the necessary annual contributions to the(ir) pension funds. State public ...

NEW YORK (CNNMoney.com) -- The Federal Reserve, reacting to concerns about the subprime lending crisis that's rocked financial markets in recent weeks, Friday cut its so-called discount rate half ...

However, there is far more uncertainty with a discount rate mortgage than with other types of mortgage. With a tracker mortgage, for example, your rate follows the bank base rate set by the Bank ...

For example. if you are using a 5% discount rate, then £105 in a year's time is worth the same as £100 today. The riskier the investment, the higher the discount rate you should apply - after ...