Effective interest rate: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson No edit summary |
||
| Line 1: | Line 1: | ||
1.<br /> | |||
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.<br /> | |||
A hedged interest rate achieved, after interest rate risk management.<br /> | |||
For example, the hedged interest rate achieved when hedging an interest rate exposure with an FRA. | |||
3.<br /> | |||
Annual effective rate. | |||
== See also == | == See also == | ||
* [[Effective interest method]] | * [[Effective interest method]] | ||
* [[Effective rate of interest]] | * [[Effective rate of interest]] | ||
* [[Internal rate of return]] | * [[Internal rate of return]] | ||
* [[Annual effective rate]] | |||
* [[FRA]] | |||
Revision as of 12:54, 29 May 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.
