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Real interest rate |
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Real interest rateThe nominal interest rate adjusted for inflation, to get the percentage yield an asset holder gets in terms of real resources. Equals the nominal interest rate minus the rate of inflation.Real interest rateThe rate of interest excluding the effect of expected inflation; that is, the rate that is earned in terms of constant-purchasing-power dollars. Interest rate expressed in terms of real goods, i.e. nominal interest rate adjusted for expected inflation.Real interest rate Similar MatchesReversionary interestReversionary interestThe right to receive the property held in a trust at some future date. For instance, a person might establish a trust containing £200,000 of shares which pays all income to his spouse until her death, and then when the spouse dies splits the capital equally between their children. In such a case, the children have a reversionary interest in the share portfolio. Interest paymentsInterest paymentsContractual debt payments based on the coupon rate of interest and the principal amount. Short interestShort interestTotal number of shares of a security that investors have sold short and that have not been repurchased to close out the short position. Usually, investors sell short to profit from price declines. As a result, the short interest is often an indicator of the amount of pessimism in the market about a particular security, although there are other reasons to short that are not related to pessimism. For example, hedging strategies for mergers and acquisition as well as derivative positions may involve short sales. Interest only mortgageInterest only mortgageA mortgage where regular payments (usually monthly) only meet the interest requirements. The interest rate is usually variable and linked to prevailing rates but can be fixed for a given period. The capital amount outstanding remains approximately the same and the borrower will need to make additional provision for repaying this amount at the end of the term of the loan. Deferred interest bondDeferred interest bondA bond that pays interest at a later date, usually in one lump sum, effectively reinvesting interest earned over the life of the bond. See: Zero coupon bond. Further SuggestionsInterest parityInterest sensitive stock Covered Interest Rate Parity Net interest cost (NIC) interest interest payable Daily interest Interest only mortgages Market interest rate Spot interest rate Interest Cap insurable interest prevailing interest rate Noninterest bearing note Covered interest rate Short term interest rates Interest rate parity theorem Covered interest arbitrage Covered interest parity compound interest stepped interest debenture stocks interest in possession Interest Earnings before interest, taxes, depreciation, and amortization (EBITDA) Gross interest |
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