|
|
Interest rate ceiling |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Interest rate ceilingSee: Interest rate capInterest rate ceiling Similar MatchesUncovered 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. 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. Interest coverInterest coverInterest 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. Interest equalization taxInterest equalization taxA tax levied between 1963 and 1974 by the United States of 15% on interest received from foreign borrowers, intended to discourage capital outflows. Applied or nominal interest rateApplied or nominal interest rateThe rate used to calculate the interest due. Further SuggestionsinterestInterest only strip (IO) gross interest True interest cost Deferred interest mortgage variable interest rate Nominal interest rate Interest only loan Gross interest Add on Interest Interest rate parity line (IRP) Interest rate floor permanent interest bearing shares Real interest rate prevailing interest rate Party in interest Interest equalization tax interest receivable Simple interest Effective annual interest rate Covered interest parity interest rate swap reversionary interest insurable interest open interest |
|
|
|