DISCOUNTED VALUE Definition

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DISCOUNTED VALUE is the present value of the sum of future payments after they has been discounted back. The higher the discount rate used, the lower the present value of the future sum.

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TIME DRAFT is a draft that matures either a certain number of days after acceptance or a certain number of days after the date of the draft. See SIGHT DRAFT.

DEBENTURE is a corporate IOU that is not backed by the companys assets (unsecured) and is therefore somewhat riskier than a bond.

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