|
|
Covered interest parity |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Covered interest parityEquality of returns on otherwise comparable financial assets denominated in two currencies, assuming that the forward market is used to cover against exchange risk. As an approximation, covered interest parity requires that i = i* + p where i is the domestic interest rate, i* is the foreign interest rate, and p is the forward premium.Similar MatchesInterest accrual rateInterest accrual rateThe rate at which interest accrues on a mortgage. Stated annual interest rateStated annual interest rateThe interest rate expressed as a per year percentage, by which interest payments are determined. See: Annual percentage rate. Variable interest rateVariable interest rateA loan rate that moves up and down based on factors including changes in the rate paid on bank certificates of deposit or Treasury bills. Wild InterestWild InterestAn interest of record which cannot be traced in the chain of title. Frequently occurs when an incorrect legal description appears on a document. An apparent wild interest may occur if a woman who changes her name through marriage after acquiring property, sells the property using her married name only. Variable interest rateVariable interest rateSee: Adjustable rate Further SuggestionsSimple interestCovered Interest Rate Parity Variable Interest Rate compound interest Interest rate ceiling High withholding tax interest income insurable interest True interest cost Earnings before interest after taxes (EBIAT) Effective annual interest rate Earnings before interest, taxes, depreciation, and amortization (EBITDA) Applied or nominal interest rate Nominal interest rate Interest Cap Effective Interest Rate Party in interest open interest Interest in Arrears Interest payments Interest only strip (IO) interest Earnings before interest and, taxes (EBIT) Gross interest Mortgage interest deduction Forward interest rate |
|
|
|