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Stated annual interest rate |
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Stated annual interest rateThe interest rate expressed as a per year percentage, by which interest payments are determined. See: Annual percentage rate.Stated annual interest rate Similar MatchesInterest only strip (IO)Interest only strip (IO)A security based solely on the interest payments from a pool of mortgages, Treasury bonds, or other bonds. Once the principal on the mortgages or bonds has been repaid, interest payments stop, and the value of the IO falls to zero. Variable Interest RateVariable Interest RateAn interest rate which fluctuates as the prevailing rate moves up or down. In mortgages there are usually maximums as to the frequency and amount of fluctuation. Also called "flexible interest rate." 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. Open interestOpen interestThe total number of derivatives contracts traded that have not yet been liquidated either by an offsetting derivative transaction or by delivery. Related: Liquidation. And interestAnd interestAn indication that the buyer will receive accrued interest in addition to the price quoted for a bond. Further SuggestionsInterest CapAny interest date Market interest rate Amortizing interest rate swap Export financing interest Compound interest Interest payments interest rate permanent interest bearing shares Interest rate futures contract interest receivable compound interest Risk Free Interest Rate Deferred interest mortgage Covered Interest Rate Parity Gross interest Short term interest rates Interest rate ceiling Minority interest Incidence of interest calculation Interest parity interest only mortgage Add on interest Best interests of creditors test insurable interest |
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