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# NTE

Short for Not To Exceed.

NTE

# Vertical integration

Vertical integration

Production of different stages of processing of a product within the same firm.

# Guaranteed growth bond

Guaranteed growth bond

A bond in which a single premium secures a guaranteed amount at its maturity date.

# Guaranteed replacement cost coverage insurance

Guaranteed replacement cost coverage insurance

A policy that covers the full cost of replacing damaged property without any allowances or deductions, e.g., depreciation.

# Interest rate swap

Interest rate swap

An 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.

# Bond interest yield

Bond interest yield

Yield calculations on bonds aim to show the return on a gilt or bond as a percentage of either its nominal value or its current price. There are three types of yield calculation that are commonly used:Nominal YieldThis is calculated by dividing the annual income on the bond by its nomina or 'par' value. So the nominal yield on a £100 bond which pays 5% interest per year is 5/100 x 100 = 5%.Current or 'Running Yield'This is calculated by dividing the annual income on the bond by its current market price. So if the market price of the £100 bond dropped to £95, the current yield on the bond at that time would be 5/95 x 100 = 5.36%. Note that as the market price of a bond drops, its yield goes up.Redemption Yield'The Redemption Yield shows what the total return on a bond would be if held to its maturity date. It reflects not only the interest payments a bondholder will receive, but also the gain/loss he will make when it matures. The income element is the same 'current yield' calculation performed above. The gain/loss element is calculated by taking the difference between the current market price and the nominal value of the bond (e.g. in our example 100 - 95 = 5), dividing it by the number of years til maturity (assume 5 years for simplicity, so 5/5 = 1) and then dividing that figure by the current price of the bond (1/95 x 100 = 1.05%) The yield to redemption is the sum of the current yield (5.36%) and the capital yield (1.05%) = 6.41%.

# Further Suggestions

Ex ante analysis
Direct-plus-indirect factor content
Interpleader
International arbitrage
Ministry of International Trade and Industry
minimum maintenance
Central bank intervention
Intervention
Counterparties
Hit counter
Correlation Integral
partial intestacy
Intermediated market
International fund
Central bank intervention
Interim financing
Intermediate good
inter bank clearing
London Interbank Offered Rate (LIBOR)
Bank for International Settlements (BIS)
International monetary system
Intermediaries
Minority interest
Maintenance fee
Lessees Interest

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