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Interest in Arrears |
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Interest in ArrearsInterest that is due only at the maturity date rather than periodically over the life of the loan.Interest in Arrears Similar MatchesCompound interestCompound interestThe process by which interest earned on an investment is added back to the amount invested, so increasing the amount of 'principal' on which further interest will be earned in future years.Compounding is sometimes described as the miracle of investing. The fact is that if you reinvest income in your portfolio, you will end up with a much larger amount than if you spend the income as you go along because of the effect of compounding. But to allow compounding to work its magic, you have to start young.Albert Einstein, when asked what he considered to be mankind's greatest invention, replied 'Compound interest!' Covered interest arbitrageCovered interest arbitrageA combination of transactions on two countries' securities and exchange markets designed to profit from failure of covered interest parity. A typical set of transactions would include selling bonds in one market, using the proceeds to buy spot foreign currency and foreign bonds, and selling forward the return at a future date. See also one-way arbitrage. Unearned interestUnearned interestInterest that has been received on a loan, but that cannot be treated as a part of earnings yet, because the principal of the loan has not been outstanding long enough. 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. 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. Further SuggestionsWild InterestNominal interest rate interest rate Earnings before interest after taxes (EBIAT) Matured noninterest bearing debt Noninterest bearing note prevailing interest rate Daily interest Minority interest True interest cost Add on Interest insurable interest Ordinary interest Rate of interest Forward interest rate interest payable Discount Interest Short interest theory Amortizing interest rate swap Interest expense Spot interest rate Effective Interest Rate Open interest Stated annual interest rate Interest rate floor |
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