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Annual equivalent rate |
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Annual equivalent rateA figure quoted in loan advertisements to help people make compare one product with another. It indicates what the rate would be if interest was paid just once a year.Similar MatchesEquivalent variationEquivalent variationThe amount of money that, paid to a person, group, or whole economy, would make them as well off as a specified change in the economy. Provides a monetary measure of the welfare effect of that change that is similar to, but not in general the same as, compensating variation. Certainty equivalentCertainty equivalentAn amount that would be accepted today (risk free) in lieu of a chance to receive a possibly higher, but uncertain, amount. Equivalent strategyEquivalent strategyAn options strategy which has the same risk-reward profile as another strategy. For example, a long May 60-65 call vertical spread is equivalent to a short May 60-65 put vertical spread. Tax equivalent yieldTax equivalent yieldThe pre-tax yield required from a taxable bond in order to equal the tax-free yield of a municipal bond. Equivalent pension benefitEquivalent pension benefitThe benefit which an employer must give an employee who was contracted out of the old graduated pension scheme. Further SuggestionsCorporate equivalent yieldEquivalent annual annuity Ad valorem equivalent Bond equivalent yield Tariff equivalent Equivalent annual benefit Equivalent bond yield Equivalent loan cash and equivalents Producer subsidy equivalent Coupon equivalent yield Equivalent annual cost Equivalent tariff Certainty Equivalent Return Coupon equivalent rate Bond equivalent basis Common stock equivalent Equivalent quota Corporate taxable equivalent |
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