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Interest parity |
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Interest parityEquality of returns on otherwise identical financial assets denominated in different currencies. May be uncovered, with returns including expected changes in exchange rates, or covered, with returns including the forward premium or discount. Also called interest rate parity.Similar MatchesNominal interest rateNominal interest rateThe interest rate unadjusted for inflation. Future InterestFuture InterestA present interest, but only a future right to possession and enjoyment of the land, such as a remainder interest, reversionary interest, etc. Earnings before interest after taxes (EBIAT)Earnings before interest after taxes (EBIAT)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 plus cash income taxes. Equivalent to EBIT minus cash taxes. Compound interestCompound interestInterest paid on previously earned interest as well as on the principal. Covered Interest Rate ParityCovered 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. Further SuggestionsMinority interestEffective Interest Rate Covered interest arbitrage Interest rate ceiling Applied or nominal interest rate Interest equalization tax Stated annual interest rate Imputed interest Interest expense Interest sensitive stock Interest rate parity theorem Spot interest rate Interest on interest Term structure of interest rates Short term interest rates Incidence of interest calculation Variable interest rate Real interest rate interest receivable Interest payments Variable interest rate insurable interest permanent interest bearing shares interest only mortgage interest |
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