interest rate derivative
21derivative — I. noun Date: 15th century 1. a word formed by derivation 2. something derived 3. the limit of the ratio of the change in a function to the corresponding change in its independent variable as the latter change approaches zero 4. a. a chemical… …
22Credit card interest — Finance Financial markets Bond market …
23Compound interest — The effect of earning 20% annual interest on an initial $1,000 investment at various compounding frequencies Compound interest arises when interest is added to the principal, so that from that moment on, the interest that has been added also… …
24Forward rate agreement — In finance, a forward rate agreement (FRA) is a forward contract in which one party pays a fixed interest rate, and receives a floating interest rate equal to a reference rate (the underlying rate). The payments are calculated over a notional… …
25Reference rate — A reference rate is a rate that determines pay offs in a financial contract and that is outside the control of the parties to the contract. It is often some form of LIBOR rate, but it can take many forms, such as a consumer price index, a house… …
26over-the-counter derivative — over the counter (OTC) derivative USA A derivative product not traded on any organized, regulated exchange. OTC derivatives are customized, bilateral, privately negotiated contracts, which, as a result, can be illiquid as compared to standardized …
27OTC derivative — over the counter (OTC) derivative USA A derivative product not traded on any organized, regulated exchange. OTC derivatives are customized, bilateral, privately negotiated contracts, which, as a result, can be illiquid as compared to standardized …
28MIBOR (Mumbai Inter-Bank Offer Rate) — MIBOR Mumbai Inter Bank Offer Rate MIBID Mumbai Inter Bank Bid Rate The Committee for the Development of the Debt Market that had studied and recommended the modalities for the development for a benchmark rate for the call money market.… …
29Mumbai Interbank Forward Offer Rate - MIFOR — A rate that Indian banks and other derivative market participants used as a benchmark for setting prices on forward rate agreements and interest rate derivatives. MIFOR was a mix of the London Interbank Offer Rate (LIBOR) and a forward premium… …
30credit derivative — Contractual arrangements that allow one party to transfer credit risk of a reference asset, which it may or may not own, to one or more counterparties. The first party may be called the protection buyer , the beneficiary or the originator . The… …
