The bank discount rate is a calculation of the interest investors earn on short-term instruments such as Treasury bills.
Using this new method, the hypothetical district mentioned before would have 40% of its students qualifying for free or reduced lunch (400 divided by 1,000)—which results in a discount rate of 60%, or ...
Discover how discounted future earnings are used to estimate a company's size by analyzing forecasted earnings and terminal values, discounted to present value.