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Risk Free Interest Rate |
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Risk Free Interest RateDescribes return available to an investor in a security somehow guaranteed to produce that return. The risk-free interest rate compensates the investor for the temporary sacrifice of consumption.Risk Free Interest Rate Similar MatchesTrue interest costTrue interest costFor a security such as commercial paper that is sold on a discount basis, true interest cost is the coupon rate required to provide an identical return assuming a coupon-bearing instrument of like maturity that pays interest in arrears. Gross interestGross interestInterest earned by deposits at banks and financial institutions, or on gilts etc. before deduction of tax.Interest charged on bank loans etc before any tax relief is taken into account. Unearned interestUnearned interestInterest that has been received on a loan, but that cannot be treated as a part of earnings yet, because the principal of the loan has not been outstanding long enough. Short interest theoryShort interest theoryThe theory that a large interest in short positions in stocks will precede a rise in the market prices, because the short positions must eventually be covered by purchases of the stock. Interest on interestInterest on interestInterest earned on reinvestment of each interest payment on money invested. See: compound interest. Further SuggestionsCovered interest arbitrageCapitalized interest insurable interest Discount Interest prevailing interest rate Variable interest rate Interest only strip (IO) interest Lessees Interest Effective Interest Rate Interest rate futures contract Short term interest rates Interest sensitive stock mortgage interest deduction Earnings before interest after taxes (EBIAT) Party in interest Best interests of creditors test Variable interest rate Interest only mortgages Interest rate ceiling Covered interest arbitrage Covered interest rate Interest sensitive insurance policy Interest stepped interest debenture stocks |
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