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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 MatchesForward interest rateForward interest rateInterest rate fixed today on a loan to be made at some future date. Prevailing 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 Best interests of creditors testBest interests of creditors testThe requirement that a claim holder voting against a plan of reorganization must receive at least as much as if the debtor were liquidated. Party in interestParty in interestAn ERISA-specified individual—such as an administrator, officer, fiduciary, trustee, custodian, or counsel—who is prohibited from making certain transactions involving a retirement plan. A trustee, for example, would be prohibited from using an IRA as collateral for a loan. Interest on interestInterest on interestInterest earned on reinvestment of each interest payment on money invested. See: compound interest. Further SuggestionsEarnings before interest after taxes (EBIAT)Open interest Simple interest Interest only loan Market interest rate Interest payments gross interest bond interest yield permanent interest bearing shares interest rate swap Risk Free Interest Rate Interest rate ceiling Interest parity Variable interest rate True interest cost High withholding tax interest income Future Interest Short term interest rates Export financing interest variable interest rate simple interest Compound interest Assumed interest rate Earnings before interest, taxes, depreciation, and amortization (EBITDA) interest receivable |
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