Covered interest rate


 

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Covered interest rate

The covered interest rate, in a currency other than your own, is the nominal interest rate plus the forward premium on the currency; thus the percent you will earn holding the foreign asset while protecting against exchange-rate change by selling the foreign currency forward.



Similar Matches

Consumer interest

Consumer interest

Interest paid on consumer loans; e.g., interest on credit cards and retail purchases.


Earnings before interest, taxes, depreciation, and amortization (EBITDA)

Earnings before interest, taxes, depreciation, and amortization (EBITDA)

A financial measure defined as revenues less cost of goods sold and selling, general, and administrative expenses. In other words, operating and nonoperating profit before the deduction of interest and income taxes. Depreciation and amortization expenses are not included in the costs.


Interest only strip (IO)

Interest only strip (IO)

A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the value of the IO falls to zero.


Imputed interest

Imputed interest

Used in accounting to refer to interest that has effectively been paid to a bondholder, even though no money has actually been paid.


Variable interest rate

Variable interest rate

See: Adjustable rate


Further Suggestions

Effective Interest Rate
Forward interest rate
Interest
compound interest
Exact interest
Party in interest
Earnings before interest after taxes (EBIAT)
Minority interest
Lessees Interest
mortgage interest relief at source
Wild Interest
Open interest
open interest
Interest accrual rate
Interest tax shield
prevailing interest rate
Interest in Arrears
Future Interest
Deferred interest bond
Term structure of interest rates
Interest on interest
Discount Interest
Mortgage interest deduction
And interest
Variable interest rate


 
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