Discounting - Financial definition
Financial acronyms
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Concise definition of the term discounting
Discounting is the calculation of the present value of a cash flow which is due to be paid or received in the future.
Comprehensive definition of the term discounting
Discounting is a very frequently used operation in finance. Thus, the market prices of bonds and notes for example is simply the sum of the discounted values of its outstanding cash flows until maturity.