true rate of interest

  • 1Interest rate parity — is a no arbitrage condition representing an equilibrium state under which investors will be indifferent to interest rates available on bank deposits in two countries.[1] Two assumptions central to interest rate parity are capital mobility and… …

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  • 2Rate of return — In finance, rate of return (ROR), also known as return on investment (ROI), rate of profit or sometimes just return, is the ratio of money gained or lost (whether realized or unrealized) on an investment relative to the amount of money invested.… …

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  • 3interest — the cost of borrowing money. Glossary of Business Terms What is paid to a lender for the use of his money and includes compensation to the lender for three factors: 1) Time value of money (lender s rate) the value of today s dollar is more than… …

    Financial and business terms

  • 4Interest — The price paid for borrowing money. It is expressed as a percentage rate over a period of time and reflects the rate of exchange of present consumption for future consumption. Also, a share or title in property. The New York Times Financial… …

    Financial and business terms

  • 5rate — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… …

    Financial and business terms

  • 6True discount — Discount Dis count , n. [Cf. F. d[ e]compte. See {Discount}, v. t.] 1. A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted.… …

    The Collaborative International Dictionary of English

  • 7Interest — For other uses, see Interest (disambiguation). Interest is a fee paid by a borrower of assets to the owner as a form of compensation for the use of the assets. It is most commonly the price paid for the use of borrowed money,[1] or money earned… …

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  • 8Interest rate swap — An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They… …

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  • 9true interest cost — For a security such as commercial paper that is sold on a discount basis, true interest cost is the coupon rate required to provide an identical return assuming a coupon bearing instrument of like maturity that pays interest in arrears. Bloomberg …

    Financial and business terms

  • 10True interest cost — For a security such as commercial paper that is sold on a discount basis, the coupon rate required to provide an identical return assuming a coupon bearing instrument of like maturity that pays interest in arrears. The New York Times Financial… …

    Financial and business terms