Effective interest rate: Difference between revisions
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imported>Doug Williamson (Added 1 line space before see also) |
imported>Doug Williamson (Link with Effective page.) |
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== See also == | == See also == | ||
* [[Effective]] | |||
* [[Effective interest method]] | * [[Effective interest method]] | ||
* [[Effective rate of interest]] | * [[Effective rate of interest]] | ||
Revision as of 19:20, 1 November 2015
1.
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.
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.
Annual effective rate.
