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Gold/Mining/Energy : Winspear Resources -- Ignore unavailable to you. Want to Upgrade?


To: maintenance who wrote (26183)7/12/2000 3:57:36 PM
From: ddl  Read Replies (2) | Respond to of 26850
 
I understand the discount rate to be the rate of interest which when applied to a future value, returns todays value.
If someone wants to sell you a $2B certificate today, due in 21 years, then what you would pay for it, depends on the discount you want.
If the discount is "zero", then $2B in 21 years is worth $2B today. If it's discounted at say 10%, then the discounted value is let's say $500M.
This is the same as saying a $500M investment at 10% today will be worth $2B in 21 years.
Are we talking the same?