Effective interest rate: Difference between revisions
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imported>Doug Williamson (Link with Effective page.) |
imported>Doug Williamson (Link with Financial liability.) |
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* [[Effective interest method]] | * [[Effective interest method]] | ||
* [[Effective rate of interest]] | * [[Effective rate of interest]] | ||
* [[Financial liability]] | |||
* [[Internal rate of return]] | * [[Internal rate of return]] | ||
* [[Annual effective rate]] | * [[Annual effective rate]] | ||
* [[FRA]] | * [[FRA]] | ||
Revision as of 08:38, 28 January 2016
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.
