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Interest rate floor |
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Interest rate floorAn interest rate agreement in which payments are made when the reference rate falls below the strike rate. Related: Interest rate cap.Interest rate floor Similar MatchesInterest only mortgageInterest only mortgageA mortgage where regular payments (usually monthly) only meet the interest requirements. The interest rate is usually variable and linked to prevailing rates but can be fixed for a given period. The capital amount outstanding remains approximately the same and the borrower will need to make additional provision for repaying this amount at the end of the term of the loan. Interest sensitive insurance policyInterest sensitive insurance policyA cash value life insurance policy whose insurance dividend rates vary with respect to inflation, enabling the policyholder to avoid the loss of purchasing power associated with inflation. Imputed interestImputed interestUsed in accounting to refer to interest that has effectively been paid to a bondholder, even though no money has actually been paid. Earnings before interest, taxes, depreciation, and amortization (EBITDA)Earnings before interest, taxes, depreciation, and amortization (EBITDA)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. Depreciation and amortization expenses are not included in the costs. Interest rate parity theoremInterest rate parity theoremExpression that the interest rate differential between two countries is equal to the difference between the forward foreign exchange rate and the spot rate. Further SuggestionsShort interestInterest payments Interest expense Variable Interest Rate Capitalized interest Interest parity And interest Interest only mortgages Effective Interest Rate Lessees Interest Interest Cap Interest rate Simple interest Applied or nominal interest rate Risk Free Interest Rate Assumed interest rate Incidence of interest calculation interest Times interest earned ratio Interest on interest Exact interest reversionary interest Covered Interest Rate Parity insurable interest Net interest cost (NIC) |
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