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...

written evidence of compound interest dates roughly 2400 BC. The annual interest rate was roughly 20%. Compound interest was necessary for the development...

as effective annual percentage rate (EAPR), annual equivalent rate (AER), effective interest rate, effective annual rate, annual percentage yield and other...

effective interest rate (EIR), effective annual interest rate, annual equivalent rate (AER) or simply effective rate is the percentage of interest on a loan...

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...

In finance, an interest rate swap (IRS) is an interest rate derivative (IRD). It involves exchange of interest rates between two parties. In particular...

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...

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...

In the United States, the federal funds rate is the interest rate at which depository institutions (banks and credit unions) lend reserve balances to...

Interest rate parity is a no-arbitrage condition representing an equilibrium state under which investors interest rates available on bank deposits in...

An interest rate future is a futures contract (a financial derivative) with an interest-bearing instrument as the underlying asset. It is a particular...

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...

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...

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...

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...

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...

Zero interest-rate policy (ZIRP) is a macroeconomic concept describing conditions with a very low nominal interest rate, such as those in contemporary...

Interest rate insurance protects the holder of a variable rate mortgage or loan from rising interest rates. It is generally offered independently of the...

thought to be related to investor expectations for the economy and interest rates. Ronald Melicher and Merle Welshans have identified several characteristics...

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...

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...

Interest rate targeting is generally the primary tool, being obtained either directly via administratively changing the central bank's own interest rates...

A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted...

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...

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...

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...

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...

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...

unfamiliar territory of having to conduct monetary policy with the policy interest rate at its effective lower bound. The unusual severity of the recession...

In the same year efforts to promote SONIA as the standard Sterling interest rate benchmark for loans, derivatives and bonds were stepped up. In July...