discount rate

noun

1

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

2

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

Examples of discount rate in a Sentence

Recent Examples on the Web

Rising earnings expectations can offset the higher discount rates demanded by higher yields. — Bill Stone, Forbes.com, 22 Aug. 2026

The Breakaway payment plan, which drivers can sign up for on the bridge website, includes a discount rate. — Joseph Buczek, CBS News, 12 Aug. 2026

The study examined 513 sell-side reports on large public companies from 2003 through 2022 and concluded that most analysts used a trailing P/E ratio rather than a discount rate. — Deena Zaidi, CNBC, 10 July 2026

Future picks are usually traded on discount rates, however. — Doug Kyed, Boston Herald, 1 June 2026

Word History

First Known Use

1827, in the meaning defined at sense 1

Rhymes for discount rate

• abdicate
• abrogate
• acetate
• activate
• actuate
• aggravate
• agitate
• alginate
• alienate
• allocate
• amputate
• angulate

Legal Definition

discount rate

noun

1

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

2

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