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Applied or nominal interest rate

The rate used to calculate the interest due.

Applied or nominal interest rate

Noninterest bearing note

Noninterest bearing note

A note without periodic interest payment, but selling at a discount and maturing at face value. See: Zero-coupon bond.

Bond interest yield

Bond interest yield

Yield calculations on bonds aim to show the return on a gilt or bond as a percentage of either its nominal value or its current price. There are three types of yield calculation that are commonly used:Nominal YieldThis is calculated by dividing the annual income on the bond by its nomina or 'par' value. So the nominal yield on a £100 bond which pays 5% interest per year is 5/100 x 100 = 5%.Current or 'Running Yield'This is calculated by dividing the annual income on the bond by its current market price. So if the market price of the £100 bond dropped to £95, the current yield on the bond at that time would be 5/95 x 100 = 5.36%. Note that as the market price of a bond drops, its yield goes up.Redemption Yield'The Redemption Yield shows what the total return on a bond would be if held to its maturity date. It reflects not only the interest payments a bondholder will receive, but also the gain/loss he will make when it matures. The income element is the same 'current yield' calculation performed above. The gain/loss element is calculated by taking the difference between the current market price and the nominal value of the bond (e.g. in our example 100 - 95 = 5), dividing it by the number of years til maturity (assume 5 years for simplicity, so 5/5 = 1) and then dividing that figure by the current price of the bond (1/95 x 100 = 1.05%) The yield to redemption is the sum of the current yield (5.36%) and the capital yield (1.05%) = 6.41%.

Minority interest

Minority interest

An outside ownership interest in a subsidiary that is consolidated with the parent for financial reporting purposes.

Spot interest rate

Spot interest rate

Interest rate fixed today on a loan that is made today. Related: Forward interest rates.

Open interest

Open interest

The net amount of outstanding open positions, either long or short, in a given futures or options contract.

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Assumed interest rate
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Effective annual interest rate
Risk Free Interest Rate
interest rate swap
Interest rate ceiling
Open interest
Earnings before interest after taxes (EBIAT)
And interest
interest only mortgage
Lessees Interest
Interest equalization tax
Cash flow after interest and taxes
Interest Cap
Interest rate
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Discount Interest
Matured noninterest bearing debt
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Deferred interest mortgage
Net interest cost (NIC)
Interest sensitive insurance policy
Earnings before interest, taxes, and depreciation (EBITD)