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Nominal interest rate |
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Nominal interest rateThe interest rate actually observed in the market, in contrast to the real interest rate.Nominal interest rateThe interest rate unadjusted for inflation.Nominal interest rate Similar MatchesPrevailing interest ratePrevailing interest rateBanks decide the rates of interest that they will pay on deposits, and the rates of interest they will charge their borrowers, on the basis of the prevailing interest rate which is in turn decided by the Bank of England.The Bank's Monetary Policy Committee meets once a month to set the official rate at which it provides funds to the banking system. The High Street banks and Building Societies follow the Bank's lead to set their base rates, so in effect what the Bank does has a direct bearing on what you pay as a borrower and what you receive as a saver.Government and local authorities might be able to borrow money at 0.5 per cent above base rateBlue chip companies with AAA credit ratings might be able to borrow at 1 per cent above base rateOrdinary members of the public and smaller companies might be able to borrow at 5 or 6 per cent above Open interestOpen interestThe net amount of outstanding open positions, either long or short, in a given futures or options contract. Interest in possessionInterest in possessionThe legal right to receive income from, or occupy, trust property. Wild InterestWild InterestAn interest of record which cannot be traced in the chain of title. Frequently occurs when an incorrect legal description appears on a document. An apparent wild interest may occur if a woman who changes her name through marriage after acquiring property, sells the property using her married name only. Covered interest parityCovered interest parityEquality of returns on otherwise comparable financial assets denominated in two currencies, assuming that the forward market is used to cover against exchange risk. As an approximation, covered interest parity requires that i = i* + p where i is the domestic interest rate, i* is the foreign interest rate, and p is the forward premium. Further SuggestionsTimes interest earned ratioIncidence of interest calculation Simple interest Interim interest Net interest cost (NIC) Party in interest Amortizing interest rate swap Interest expense Interest parity Compound interest Interest sensitive stock mortgage interest relief at source Ordinary interest Interest equalization tax Interest rate Term structure of interest rates Compound interest compound interest Unearned interest Interest on interest Interest rate ceiling Imputed interest Covered interest arbitrage Interest Cap Interest rate |
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