Business and Personal Finance Dictionary

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• ESCROW YIELD
  
  The annual discount rate that, when used in computing the present value (as of the purchase date of the escrow securities) of the securities' receipts, produces an amount equal to the present value of the aggregate purchase price of the securities. If a float contract is used in conjunction with an open market escrow, then the PV target is equal to the cost of the open market securities less the value received for the contract, and the receipt dates used are those dates when funds are disbursed from the float account instead of the actual receipt dates on the securities.
  
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