# How do you find the discount factor with zero rate?

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The relationship between the zero rate and the discount factor is: DF(t) = 1/(1+r)^t, where DF is the discount factor, and r is the zero rate for maturity t (in years). One of the important properties of the discount factor is that it is equal to 1 at t=0.

## How do you find discount factor with interest rate?

Calculating Discount Rates

To calculate the discount factor for a cash flow one year from now, divide 1 by the interest rate plus 1. For example, if the interest rate is 5 percent, the discount factor is 1 divided by 1.05, or 95 percent.

## How do you calculate the discount rate?

How to calculate discount and sale price?

1. Find the original price (for example \$90 )
2. Get the the discount percentage (for example 20% )
3. Calculate the savings: 20% of \$90 = \$18.
4. Subtract the savings from the original price to get the sale price: \$90 – \$18 = \$72.
5. You’re all set!

## What is the discount factor equation?

Formula for the Discount Factor

NPV = F / [ (1 + r)^n ] where, PV = Present Value, F = Future payment (cash flow), r = Discount rate, n = the number of periods in the future).

## How do you calculate discount factor in Excel?

Discount Factor = 1 / (1 * (1 + Discount Rate)PeriodNumber)

1. Discount Factor = 1 / (1 * (1 + 10%) ^ 2)
2. Discount Factor = 0.83.

## What is an example of discount rate?

In this context of DCF analysis, the discount rate refers to the interest rate used to determine the present value. For example, \$100 invested today in a savings scheme that offers a 10% interest rate will grow to \$110.

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