Effective interest rate: Difference between revisions
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imported>Doug Williamson (Link with Financial liability.) |
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1. | ''(EIR).'' | ||
1. ''Financial reporting.'' | |||
In relation to a financial asset or financial liability, the internal rate of return of the cash flows of the instrument, including the initial cost and the final maturity amount. | In relation to a financial asset or financial liability, the internal rate of return of the cash flows of the instrument, including the initial cost and the final maturity amount. | ||
2. | 2. ''Hedging.'' | ||
A hedged interest rate achieved, after interest rate risk management. | |||
A hedged interest rate achieved, after interest rate risk management. | |||
For example, the hedged interest rate achieved when hedging an interest rate exposure with an FRA. | For example, the hedged interest rate achieved when hedging an interest rate exposure with an FRA. | ||
3. | 3. ''Interest rates - comparability.'' | ||
Annual effective rate. | Annual effective rate. | ||
== See also == | == See also == | ||
* [[Annual effective rate]] | |||
* [[Effective]] | * [[Effective]] | ||
* [[Effective interest method]] | * [[Effective interest method]] | ||
* [[Effective rate of interest]] | * [[Effective rate of interest]] | ||
* [[Financial asset]] | |||
* [[Financial liability]] | * [[Financial liability]] | ||
* [[Financial reporting]] | |||
* [[Forward rate agreement]] (FRA) | |||
* [[Hedging]] | |||
* [[Interest rate]] | |||
* [[Internal rate of return]] | * [[Internal rate of return]] | ||
[[Category:Financial_products_and_markets]] | |||
Latest revision as of 23:01, 30 October 2024
(EIR).
1. Financial reporting.
In relation to a financial asset or financial liability, the internal rate of return of the cash flows of the instrument, including the initial cost and the final maturity amount.
2. Hedging.
A hedged interest rate achieved, after interest rate risk management.
For example, the hedged interest rate achieved when hedging an interest rate exposure with an FRA.
3. Interest rates - comparability.
Annual effective rate.
