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Covered Interest Rate Parity |
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Covered Interest Rate ParityThe principle that the yields from interest-bearing foreign and domestic investments should be equal when the forward currency market is used to predetermine the domestic currency payoff from a foreign investment.Covered Interest Rate Parity Similar MatchesInterest receivableInterest receivableAn accounting term which refers to the amount of income a company receives in the form of interest payments on its cash. The figure for interest receivable can be found in the balance sheet. Its flip side is 'interest payable' - the amount a company pays on its borrowings. Equilibrium rate of interestEquilibrium rate of interestThe interest rate that clears the market. Also called the trade-clearing interest rate. Real interest rateReal interest rateThe rate of interest excluding the effect of expected inflation; that is, the rate that is earned in terms of constant-purchasing-power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for expected inflation. Amortizing interest rate swapAmortizing interest rate swapSwap in which the principal or notional amount rises (falls) as interest rates rise (decline). Spot interest rateSpot interest rateInterest rate fixed today on a loan that is made today. Related: Forward interest rates. Further SuggestionsCovered interest ratecompound interest Interest tax shield Interest Cap mortgage interest deduction Covered interest arbitrage Unearned interest Interest parity Best interests of creditors test Incidence of interest calculation insurable interest Interest rate Simple interest Term structure of interest rates True interest cost Covered interest parity Risk Free Interest Rate Interest in Arrears Nominal interest rate Deferred interest mortgage Interest accrual rate Matured noninterest bearing debt Open interest open interest Earnings before interest, taxes, depreciation, and amortization (EBITDA) |
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