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Interest Cap |
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Interest CapThe maximum interest rate increase of an Adjustable Mortgage Loan. For example: a 120% loan with a 5% interest rate cap would have maximum interest for the life of the loan which would not exceed 17%.Interest Cap Similar MatchesEarnings before interest and, taxes (EBIT)Earnings before interest and, taxes (EBIT)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. Short term interest ratesShort term interest ratesInterest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. Effective Interest RateEffective Interest RateThe annual rate at which an investment grows in value when interest is credited more often than once a year. And interestAnd interestAn indication that the buyer will receive accrued interest in addition to the price quoted for a bond. Uncovered interest parityUncovered interest parityEquality of expected returns on otherwise comparable financial assets denominated in two currencies, without any cover against exchange risk. Uncovered interest parity requires approximately that i = i* + a where i is the domestic interest rate, i* the foreign interest rate, and a the expected appreciation of foreign currency at an annualized percentage rate. Further SuggestionsInterest parityRate of interest interest payable Export financing interest interest in possession Nominal interest rate Nominal interest rate Interest rate parity line (IRP) Exact interest Spot interest rate Interest rate parity theorem Best interests of creditors test Interest deduction Applied or nominal interest rate Simple interest Interest accrual rate Incidence of interest calculation Interest in Arrears Interest equalization tax Future Interest interest only mortgage variable interest rate Covered interest parity Interest sensitive insurance policy Compound interest |
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