| 1 | The discount rate is set by the Fed. | |
| 2 | So, how do we get the price from the discount rate? | |
| 3 | There was an important change in the discount rate in January of 2003. | |
| 4 | The primary discount rate is typically a hundred basis points above the Funds Rate. | |
| 5 | The discount rate can be a useful tool, especially at times of financial disruptions. |
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