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Spot interest rate |
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Spot interest rateInterest rate fixed today on a loan that is made today. Related: Forward interest rates.Spot interest rate Similar MatchesAssumed interest rateAssumed interest rateRate of interest used by an insurance company to calculate the payout on an annuity contract. Interest sensitive stockInterest sensitive stockStocks whose earnings are dependent upon and change with the interest rate, e.g., bank stocks. Interest equalization taxInterest equalization taxTax on foreign investment by residents of the US which was abolished in 1974. Interest coverInterest coverInterest cover measures the amount of interest paid by a company on its borrowings against its operating profit in the same period.The ratio shows the impact of gearing on a company's profit and loss account. If the figure is low, a small reduction in operating profits, or a rise in the cost of borrowing, can wipe out pre-tax profits. To calculate interest cover, divide the operating profits by the interest paid.Example: a company which has profits of £4m and which pays net interest of £1m, has interest cover of 4. InterestInterestThe price paid for borrowing money. It is expressed as a percentage rate over a period of time and reflects the rate of exchange of present consumption for future consumption. Also, a share or title in property. Further SuggestionsStated annual interest rateCovered interest arbitrage Add on Interest Interest Cap gross interest Uncovered interest parity Incidence of interest calculation True interest cost stepped interest debenture stocks bond interest yield interest in possession permanent interest bearing shares Interest expense Applied or nominal interest rate Discount Interest interest receivable Interim interest Nominal interest rate Interest on interest Interest only loan Interest parity Rate of interest Short interest Earnings before interest, taxes, depreciation, and amortization (EBITDA) Open interest |
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