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Net interest cost (NIC) |
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Net interest cost (NIC)The total amount of interest that will be paid on a debt obligation by a corporate or municipal bond issuer.Net interest cost (NIC) 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 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. Ordinary interestOrdinary interestInterest based on a 360-day year instead of a 365-day year, resulting in what can be a significant difference. InterestInterestThe charge you pay if you borrow money, and the income you receive if you lend it or invest it in an income-producing bank account or in a security like a bond or a gilt. For example if you borrow £1,000 at an interest rate of 10% per year, the interest payable is £100 per year. Loans are sometimes made at fixed rates of interest, and sometimes at variable rates.If you invest £1,000 at 10%, then you as lender expect to receive £100 interest. If instead of spending the interest, you reinvest it in the same security, then at the start of the second year you will have £1,100 invested and attracting 10%, so at the end of the second year you expect to receive £110 interest. This is the principle of compound interest, where you get rolling interest on your original capital and on the reinvested income. Assumed interest rateAssumed interest rateRate of interest used by an insurance company to calculate the payout on an annuity contract. Further SuggestionsFuture InterestShort interest Variable interest rate Earnings before interest, taxes, and depreciation (EBITD) insurable interest Effective Interest Rate Daily interest Mortgage interest deduction interest rate swap Equilibrium rate of interest Market interest rate Matured noninterest bearing debt Real interest rate Covered interest parity interest receivable variable interest rate mortgage interest relief at source Risk Free Interest Rate Interest rate floor Times interest earned ratio Interest only mortgages Stated annual interest rate Interest parity interest in possession Earnings before interest, taxes, depreciation, and amortization (EBITDA) |
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