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True interest cost |
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True 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.True interest cost Similar MatchesUnearned 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. Effective annual interest rateEffective annual interest rateAn annual measure of the time value of money that fully reflects the effects of compounding. Nominal interest rateNominal interest rateThe interest rate actually observed in the market, in contrast to the real interest rate. Deferred interest mortgageDeferred interest mortgageInterest is not paid during the deferral period. When the period is over, the accumulated interest is added to the original loan. Some lenders add this interest to the total of your loan to give a new loan figure and new interest payments. Others calculate your interest payments on the original loan as normal and then spread the repayment of the deferred interest over a set period of time. The latter method is better for you, as adding the deferred interest to the loan means you end up paying interest on the deferred interest! Interest accrual rateInterest accrual rateThe rate at which interest accrues on a mortgage. Further SuggestionsNominal interest rateShort interest theory Times interest earned ratio Interest rate parity line (IRP) Interest rate Earnings before interest and, taxes (EBIT) Matured noninterest bearing debt compound interest Consumer interest Add on interest Any interest date Effective Interest Rate Interest rate ceiling Market interest rate Lessees Interest Real interest rate Covered interest arbitrage Export financing interest Interest Deferred interest bond stepped interest debenture stocks gross interest interest rate Equilibrium rate of interest Interest sensitive stock |
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