Forward dating discount

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Some discounts and allowances are forms of sales promotion.

There are many purposes for discounting, including to increase short-term sales, to move out-of-date stock, to reward valuable customers, to encourage distribution channel members to perform a function, or to otherwise reward behaviors that benefit the discount issuer.so F/S - 1 is 13.636%, which is a positive number, yet the implication is that the dollar should depreciate since it will take more dollars in one year to make a euro.Intuitively I would say this means the dollar is at a forward DISCOUNT since it will depreciate, however I think I have seen some problems refer to it as a forward premium simply because the equation is positive, so in that case premium = depreciate…. Trade Discounts are deductions in price given by the wholesaler or manufacturer to the retailer at the list price or catalogue price.Cash Discounts are reductions in price given by the creditor to the debitor to motivate the debitor to make payment with in specified time .

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