The difference is greater, the higher the rate of discount and the longer the time to maturity.

It can be seen clearly by considering the expression for the rate of discount above.

This enables the bill to be traded at a 'fine' rate of discount.

These are known as tap bills and the rate of discount is set by the Treasury.

Their rate of discount depends on the financial status of the two companies.

This is done by calculating a rate of discount.

(Note that a rate of discount is calculated on the face value not the purchase price.

Determining the original price of a sale item given the rate of discount, for example.

The price that they are sold for, and hence their rate of discount, will depend on demand and supply.

By selling more bills or buying back fewer, it can force down their price and hence force up the rate of discount.

Clearly the financial standing of the drawer and drawee are important in determining the rate of discount.

The rate of discount which he allows can vary considerably, but the most common discount for general trade books is 35% off the published price.

Although comparable with an annual rate of interest, however, this rate of discount is not identical.

Demand and supply will ensure that the rate of discount will reflect market rates of interest.

The rate of discount, , refers to interest that is payable in advance, before funds have been transferred.

It is negatively sloped with respect to price because of the inverse relationship between bill prices and rates of discount.

The stock of bills is shown by and this stock is willingly held at an average rate of discount of.

For all intents and purposes, this implies a social rate of discount that is effectively zero, implying almost equal weight to all generations.

If the current rate of discount on treasury bills is 11 per cent, calculate the price of a 50,000 ninety-one-day bill with sixty days to redemption.

Society will wish to evaluate this cost as the social cost of building the plant multiplied by the social rate of discount which we discussed above.

These capacity charges were intended to cover the annual cost of the interest payments (at the social rate of discount) on the money used to build the plant.

MLR was set at %; above the average rate of discount for Treasury bills at the most recent tender, rounded to the nearest %; above.

But the Bank of England can nevertheless influence the rate of discount by altering the amount of Treasury bills it sells.

The appropriate formula is where is the rate of discount, the redemption value, the initial price of the bill and n the time to redemption in years.

Player A's expected payoff in each period will therefore tend to a value which is less than that received by the dominant strategy type for any positive rate of discount.