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Short term interest rates |
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Short term interest ratesInterest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates.Short term interest rates Similar MatchesVariable interest rateVariable interest rateSee: Adjustable rate Uncovered interest parityUncovered interest parityEquality of expected returns on otherwise comparable financial assets denominated in two currencies, without any cover against exchange risk. Uncovered interest parity requires approximately that i = i* + a where i is the domestic interest rate, i* the foreign interest rate, and a the expected appreciation of foreign currency at an annualized percentage rate. Covered interest rateCovered interest rateThe covered interest rate, in a currency other than your own, is the nominal interest rate plus the forward premium on the currency; thus the percent you will earn holding the foreign asset while protecting against exchange-rate change by selling the foreign currency forward. Reversionary 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 CapInterest CapThe maximum interest rate increase of an Adjustable Mortgage Loan. For example: a 120% loan with a 5% interest rate cap would have maximum interest for the life of the loan which would not exceed 17%. Further SuggestionsCash flow after interest and taxesDeferred interest bond Interest sensitive stock gross interest stepped interest debenture stocks Assumed interest rate Interest equalization tax Interest Lessees Interest Earnings before interest, taxes, depreciation, and amortization (EBITDA) Interest parity interest cover Term structure of interest rates Spot interest rate Exact interest bond interest yield Daily interest Ordinary interest Interest rate Short interest theory Interest payments Deferred interest mortgage open interest Short interest simple interest |
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