标题: questions about Interest rate [打印本页] 作者: leadcfa 时间: 2013-4-1 12:27 标题: questions about Interest rate
Hi, i have some questions on interest rates.
For central banks lending to depository institutes, central bank charge discount rate.
depository Institutes to depository institutes they charge federal rates
For people who deposit in the institutes, institute charge the market interest rate.
I like to ask, for business who are calculating the Cash flow of returns of incoming cash flows periodically, what is the rate they use? is it the market interest rates, discount rate or the federal fund rate?
And i just study about bonds, i understand that bond price falls when the market interest rate is higher than the coupon rate. Is the market interest rate the same as the rate institutes give to people whe they deposit in their institutes?
Thanks作者: himanshumh 时间: 2013-4-1 12:27
hi guys thanks… i guess i shall close this topic cos i have found the ans to both qns in wikipedia.
seems like wacc is often used a the discount rate for calculating npv and price sensitivity is according to market interest rate
