Interest
101interest rate cap — Under a cap arrangement, the seller of the cap will make payments to the buyer if interest rates rise above an agreed rate. The payment to be made is calculated by reference to a notional principal sum over an agreed term. In return, the buyer… …
102interest rate floor — The opposite of an interest rate cap. An arrangement under which the seller, in return for a premium, will pay to the buyer the difference between the specified floor rate and the lower variable rate, should the variable rate fall below that… …
103interest coverage ratio — USA The ratio of EBITDA to interest payments due on debt for borrowed money. This financial ratio measures the company s ability to satisfy its interest payments as they become due. Higher ratios (greater than 1:1) are preferable and indicate the …
104interest amortization — UK US noun [U] FINANCE ► the division of the interest on a loan into a number of regular payments through the whole period of the loan and the making of these payments: »Interest amortization allows a mortgage to be repaid in monthly repayments… …
105interest compounded annually — UK US noun [U] FINANCE ► a method of calculating and adding interest to an investment or loan once a year, rather than for another period: »If you borrow $100,000 at 5% interest compounded annually, after the first year you would owe $5,250 on a… …
106interest in advance — UK US noun [U] FINANCE ► interest relating to a particular period of a loan, calculated or paid at the beginning of the period: »If you pay interest in advance for a period that goes beyond the end of the tax year, payments will normally be… …
107interest in arrears — UK US noun [U] FINANCE ► interest relating to a particular period of a loan, calculated or paid at the end of the period: »The company went bankrupt owing $2.4 million of interest in arrears …
108interest rate arbitrage — UK US noun [U] FINANCE ► INTEREST ARBITRAGE(Cf. ↑interest arbitrage) …
109interest rate derivative — UK US noun [C] FINANCE ► a financial product that gives the right to pay or receive an amount of money at a future time, based on a particular interest rate: »Many of the world s top companies use interest rate derivatives to control their… …
110interest rate parity — UK US noun [U] FINANCE ► INTEREST PARITY(Cf. ↑interest parity) …
