Interest on interest


 

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Interest on interest

Interest earned on reinvestment of each interest payment on money invested. See: compound interest.



Interest on interest

Similar Matches

Interest expense

Interest expense

Interest expense is the money the corporation or individual pays out in interest on loans.


Interest cover

Interest cover

Interest cover measures the amount of interest paid by a company on its borrowings against its operating profit in the same period.The ratio shows the impact of gearing on a company's profit and loss account. If the figure is low, a small reduction in operating profits, or a rise in the cost of borrowing, can wipe out pre-tax profits. To calculate interest cover, divide the operating profits by the interest paid.Example: a company which has profits of £4m and which pays net interest of £1m, has interest cover of 4.


Open interest

Open interest

The total number of derivatives contracts traded that have not yet been liquidated either by an offsetting derivative transaction or by delivery. Related: Liquidation.


Stepped interest debenture stocks

Stepped interest debenture stocks

A debenture stock where the rate of interest payable to lenders is increased in stages over the initial life until a certain rate is reached. Thereafter, the rate remains fixed until the redemption date. This type of debenture is advantageous to an investment trust in that interest payments will be lower than the norm in the initial years (whilst the trust consolidates its growth) and above the norm in the later years (when it will be expected that the trust's assets can afford the extra interest).


Deferred interest bond

Deferred interest bond

A bond that pays interest at a later date, usually in one lump sum, effectively reinvesting interest earned over the life of the bond. See: Zero coupon bond.


Further Suggestions

Matured noninterest bearing debt
Interest
Exact interest
gross interest
reversionary interest
Equilibrium rate of interest
Interest rate ceiling
prevailing interest rate
Gross interest
Short term interest rates
Interest in Arrears
Interest rate futures contract
Noninterest bearing note
Compound interest
Interest sensitive stock
Applied or nominal interest rate
Interim interest
Nominal interest rate
Interest tax shield
bond interest yield
Interest parity
Covered Interest Rate Parity
Effective annual interest rate
Interest rate
open interest


 
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