interest coupon
91weighted-average coupon — ( WAC) The average interest rate charged to mortgage loan borrowers in an MBS pool weighted by the size of each loan. Individual loans in an MBS pool will not usually have the same rates of interest. For example, FNMA pools may have mortgages… …
92Real interest rate — The real interest rate is approximately the nominal interest rate minus the inflation rate (see Fisher equation and below for exact equation). Since the inflation rate over the course of a loan is not known initially, volatility in inflation… …
93Gross Coupon — A term used to describe the coupon received from a mortgage pool security such as a mortgage backed security (MBS). Gross coupon refers to the average of all the interest rates in the pool paid by the owners of the mortgages and before any… …
94Variable Coupon Renewable Note - VCR — A renewable fixed income security with variable coupon rates that are periodically reset. A Variable Coupon Renewable Note is a type of debt security with a weekly maturity. The principal of this security is reinvested automatically at new… …
95Current coupon — A bond selling at or close to par, that is, a bond with a coupon close to the yields currently offered on new bonds of a similar maturity and credit risk. The New York Times Financial Glossary * * * The prevailing coupon (interest paid on a… …
96Zero-coupon bond — A bond in which no periodic coupon is paid over the life of the contract. Instead, both the principal and the interest are paid at the maturity date. The New York Times Financial Glossary * * * zero coupon bond zero coupon bond ➔ bond …
97zero coupon security — noun a security that makes no interest payments but instead is sold at a deep discount from its face value • Syn: ↑zero coupon security • Hypernyms: ↑security, ↑certificate • Hyponyms: ↑zero coupon bond, ↑zero coupon bond …
98zero-coupon security — noun a security that makes no interest payments but instead is sold at a deep discount from its face value • Syn: ↑zero coupon security • Hypernyms: ↑security, ↑certificate • Hyponyms: ↑zero coupon bond, ↑zero coupon bond …
99Accrued Interest — 1. A term used to describe an accrual accounting method when interest that is either payable or receivable has been recognized, but not yet paid or received. Accrued interest occurs as a result of the difference in timing of cash flows and the… …
100Variable Interest Rate — An interest rate on a loan or security that fluctuates over time, because it is based on an underlying benchmark interest rate or index that changes periodically. The obvious advantage of a variable interest rate is that if the underlying… …
