Interest rate swap 


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Interest rate swapAn arrangement in which two parties agree to exchange periodic interest payments, at agreed intervals, over an agreed period, but without any principal being paid. The most common and simplest deal involves one party paying a fixed rate of interest and the other paying a floating rate. IRSs are used for hedging, speculation or arbitrage.Similar MatchesInterestInterestThe price paid for borrowing money. It is expressed as a percentage rate over a period of time and reflects the rate of exchange of present consumption for future consumption. Also, a share or title in property. Interest payableInterest payableAn accounting term which refers to the amount a company pays in the form of interest on cash borrowings. The figure for interest payable can be found in the balance sheet. Its flip side is 'interest receivable'  the amount a company receives as interest on its cash deposits. Interest only strip (IO)Interest only strip (IO)A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the value of the IO falls to zero. Exact interestExact interestInterest paid based on the basis of a 365day/year schedule by a bank or other financial institution as opposed to a 360day basis (ordinary interest). Difference can be material when large principal sums of money are involved. Covered interest rateCovered interest rateThe covered interest rate, in a currency other than your own, is the nominal interest rate plus the forward premium on the currency; thus the percent you will earn holding the foreign asset while protecting against exchangerate change by selling the foreign currency forward. Further SuggestionsCompound interestinterest receivable interest cover Interest sensitive insurance policy simple interest Variable interest rate permanent interest bearing shares Short interest Market interest rate Effective annual interest rate Export financing interest mortgage interest deduction stepped interest debenture stocks Interest rate ceiling Interest rate floor gross interest Interest only loan Discount Interest Variable Interest Rate Net interest cost (NIC) Compound interest Party in interest Nominal interest rate Interest rate Daily interest 
