Many financial instruments lack a market where they trade such that their market values can be observed. However, by properly modeling their actual or estimated cash flows and applying a discount rate that can be derived from the marketplace, the present value of most financial instruments can be estimated. The term “market value” is usually used in the context of an observed price in the marketplace and it is derived using present value methodology. When the market price is not directly observable as is the case with the liabilities of depository institutions, the term “present value” or “fair value” is often used.