An interest rate is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed (called the principal sum). The...
36 KB (4,260 words) - 01:26, 26 August 2024
written evidence of compound interest dates roughly 2400 BC. The annual interest rate was roughly 20%. Compound interest was necessary for the development...
71 KB (10,075 words) - 06:45, 13 August 2024
as effective annual percentage rate (EAPR), annual equivalent rate (AER), effective interest rate, effective annual rate, annual percentage yield and other...
18 KB (2,592 words) - 04:27, 15 August 2024
effective interest rate (EIR), effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the percentage of interest on a loan...
4 KB (503 words) - 20:02, 21 June 2024
In finance and economics, the nominal interest rate or nominal rate of interest is the rate of interest stated on a loan or investment, without any adjustments...
6 KB (862 words) - 14:24, 16 April 2024
In finance, an interest rate swap (IRS) is an interest rate derivative (IRD). It involves exchange of interest rates between two parties. In particular...
32 KB (3,805 words) - 14:02, 23 August 2024
an interest rate cap is a type of interest rate derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds...
12 KB (1,831 words) - 23:37, 28 August 2023
The real interest rate is the rate of interest an investor, saver or lender receives (or expects to receive) after allowing for inflation. It can be described...
15 KB (2,119 words) - 15:00, 25 April 2024
In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to...
28 KB (2,790 words) - 19:14, 27 July 2024
A fixed-rate mortgage (FRM) is a mortgage loan where the interest rate on the note remains the same through the term of the loan, as opposed to loans where...
13 KB (2,101 words) - 20:04, 19 April 2024
benchmark product is an interest rate, or set of different interest rates. There are a multitude of different interest rate indices that can be used...
7 KB (775 words) - 16:07, 23 March 2024
Interest rate parity is a no-arbitrage condition representing an equilibrium state under which investors interest rates available on bank deposits in...
24 KB (3,088 words) - 21:04, 27 March 2024
An interest rate future is a futures contract (a financial derivative) with an interest-bearing instrument as the underlying asset. It is a particular...
9 KB (1,051 words) - 08:20, 12 July 2024
The neutral rate of interest, previously called the natural rate of interest, is the real (net of inflation) interest rate that supports the economy at...
10 KB (1,319 words) - 07:10, 11 August 2022
Mortgage (redirect from Mortgage interest)
charge a fixed interest rate, a variable interest rate, or both. These interest rates are tied to a base rate (individual bank's benchmark rate). For Islamic...
55 KB (7,253 words) - 16:43, 11 August 2024
Interest rate risk is the risk that arises for bond owners from fluctuating interest rates. How much interest rate risk a bond has depends on how sensitive...
4 KB (536 words) - 12:43, 12 April 2024
Zero interest-rate policy (ZIRP) is a macroeconomic concept describing conditions with a very low nominal interest rate, such as those in contemporary...
6 KB (617 words) - 03:58, 24 April 2024
A floating interest rate, also known as a variable or adjustable rate, refers to any type of debt instrument, such as a loan, bond, mortgage, or credit...
6 KB (831 words) - 15:31, 21 May 2024
Interest rate insurance protects the holder of a variable rate mortgage or loan from rising interest rates. It is generally offered independently of the...
3 KB (294 words) - 18:51, 28 November 2023
Monetary policy (redirect from Interest rate targeting)
Interest rate targeting is generally the primary tool, being obtained either directly via administratively changing the central bank's own interest rates...
75 KB (9,078 words) - 04:35, 14 August 2024
Structured product (redirect from Interest rate-linked note)
highly sensitive to, changes in the value of underlying assets, indices, interest rates or cash flows". From the investor's point of view, the concept of structuring...
20 KB (2,306 words) - 12:21, 26 May 2024
Yield curve (redirect from Term structure of interest rates)
thought to be related to investor expectations for the economy and interest rates. Ronald Melicher and Merle Welshans have identified several characteristics...
45 KB (5,682 words) - 21:54, 6 April 2024
A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted...
38 KB (5,193 words) - 21:57, 14 August 2024
The interest rate channel is a mechanism of monetary policy, whereby a policy-induced change in the short-term nominal interest rate by the central bank...
6 KB (869 words) - 03:12, 2 December 2023
percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (EAPR), is the interest rate for a whole...
31 KB (4,410 words) - 09:52, 25 April 2024
Inflation (redirect from Inflation rate)
nominal rate of interest will see a reduction in the "real" interest rate as the inflation rate rises. The real interest on a loan is the nominal rate minus...
119 KB (13,775 words) - 21:42, 16 August 2024
induce any investors to hold it. In practice, to infer the risk-free interest rate in a particular currency, market participants often choose the yield...
11 KB (1,560 words) - 18:21, 30 June 2023
interest rate option is a specific financial derivative contract whose value is based on interest rates. Its value is tied to an underlying interest rate...
1 KB (125 words) - 05:01, 12 May 2024
This is a list of countries by annualized interest rate set by the central bank for charging commercial, depository banks for loans to meet temporary...
42 KB (1,815 words) - 02:30, 9 August 2024
History of Federal Open Market Committee actions (redirect from List of US Federal Reserve interest rate targets)
unfamiliar territory of having to conduct monetary policy with the policy interest rate at its effective lower bound. The unusual severity of the recession...
52 KB (1,892 words) - 16:56, 14 August 2024