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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 MatchesAnd interestAnd interestAn indication that the buyer will receive accrued interest in addition to the price quoted for a bond. Open interestOpen interestThe total number of derivatives contracts traded that have not yet been liquidated either by an offsetting derivative transaction or by delivery. Related: Liquidation. Effective Interest RateEffective Interest RateThe annual rate at which an investment grows in value when interest is credited more often than once a year. Ordinary interestOrdinary interestInterest based on a 360-day year instead of a 365-day year, resulting in what can be a significant difference. Variable Interest RateVariable Interest RateAn interest rate which fluctuates as the prevailing rate moves up or down. In mortgages there are usually maximums as to the frequency and amount of fluctuation. Also called "flexible interest rate." Further SuggestionsInterestAdd on Interest Party in interest Net interest cost (NIC) Wild Interest mortgage interest relief at source Term structure of interest rates Interest rate High withholding tax interest income interest only mortgage interest payable Daily interest Best interests of creditors test mortgage interest deduction Rate of interest Mortgage interest deduction Spot interest rate Deferred interest mortgage Interest payments insurable interest Consumer interest Unearned interest Interest rate futures contract Imputed interest interest cover |
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