It is used to calculate the net present value of future cash flows from a project and to compare this amount to the initial investment. The discount factor used in this calculation is the company ...

5. Apply the formula to calculate the discount factor: Input the values you have determined—discount rate (r) and the number of periods (n)—into the formula. Calculate the discount factor by raising ...

Learn how to use three factors and three methods to calculate the discount rate for your long-term investments, and how to apply them to your capital budgeting decisions.

This programme uses market data on par interest rate swaps to bootstrap a discount factor curve using cubic spline interpolation. This is an extension to MSc Financial Maths coursework completed at ...