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Interest rate parity theorem |
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Interest 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.Interest rate parity theorem Similar MatchesInterest rate ceilingInterest rate ceilingSee: Interest rate cap Earnings before interest and, taxes (EBIT)Earnings before interest and, taxes (EBIT)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. True interest costTrue interest costFor a security such as commercial paper that is sold on a discount basis, true interest cost is the coupon rate required to provide an identical return assuming a coupon-bearing instrument of like maturity that pays interest in arrears. Any interest dateAny interest dateA call provision in a municipal bond indenture that establishes the right of redemption for the issuer on any interest payment due date. Interest deductionInterest deductionAn interest expense, such as interest on a margin account, that is allowed as a deduction for tax purposes. Further SuggestionsRisk Free Interest RateTerm structure of interest rates compound interest Gross interest Wild Interest open interest Cash flow after interest and taxes Interest expense Covered interest parity Interest tax shield Real interest rate Export financing interest Deferred interest bond Stated annual interest rate interest cover Short interest Rate of interest Interest rate parity line (IRP) Open interest Interest rate floor Best interests of creditors test insurable interest Spot interest rate Covered Interest Rate Parity Compound interest |
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