Effective interest rate: Difference between revisions
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imported>Doug Williamson (Update heading.) |
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''(EIR).'' | |||
1. ''Financial reporting.'' | 1. ''Financial reporting.'' | ||
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* [[Internal rate of return]] | * [[Internal rate of return]] | ||
[[Category:Financial_products_and_markets]] | [[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.
