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Annual effective discount rate
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Annual effective discount rate : ウィキペディア英語版
Annual effective discount rate

The annual effective discount rate expresses the amount of interest paid/earned as a percentage of the balance at the end of the (annual) period. This is in contrast to the effective rate of interest, which expresses the amount of interest as a percentage of the balance at the ''start'' of the period. The discount rate is commonly used for U.S. Treasury bills and similar financial instruments.
For example, consider a government bond that sells for $95 and pays $100 in a year's time. The discount rate is
: \frac = 5.00\%
The interest rate is calculated using 95 as the base
: \frac = 5.26\%
For every effective interest rate, there is a corresponding effective discount rate, given by
: d = \frac
or inversely,
: i = \frac
Given the above equation relating \,d to \,i it follows that
: d = \frac - \frac\ = 1-v where v is the discount factor
or equivalently,
: v = 1-d
Since \, d = iv ,it can readily be shown that
: id = i-d
This relationship has an interesting verbal interpretation. A person can either borrow 1 and repay 1 + ''i'' at the end of the period or borrow 1 - ''d'' and repay 1 at the end of the period. The expression ''i'' - ''d'' is the difference in the amount of interest paid. This difference arises because the principal borrowed differs by ''d''. Interest on amount ''d'' for one period at rate ''i'' is ''id''.
==Annual discount rate convertible \,pthly==

A discount rate applied \,p times over equal subintervals of a year is found from the annual effective rate d as
:1-d = \left(1-\frac\right)^p
where \,d^ is called the annual nominal rate of discount convertible \,pthly.
:1-d = \exp (-d^)
\,d^=\delta is the force of interest.
The rate \,d^ is always bigger than d because the rate of discount convertible pthly is applied in each subinterval to a smaller (already discounted) sum of money. As such, in order to achieve the same total amount of discounting the rate has to be slightly more than 1/pth of the annual rate of discount.

抄文引用元・出典: フリー百科事典『 ウィキペディア(Wikipedia)
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