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discount rate

noun

Definition of discount rate

  1. 1 :  the interest on an annual basis deducted in advance on a loan

  2. 2 :  the charge levied by a central bank for advances and rediscounts

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First Known Use of discount rate

1827

Law Dictionary

discount rate

noun

Legal Definition of discount rate

  1. 1 :  the interest on an annual basis deducted in advance on a loan

  2. 2 :  the interest levied by the Federal Reserve for advances and rediscounts

Learn More about discount rate

  1. Britannica.com: Encyclopedia article about discount rate

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