Effective interest rate: Difference between revisions
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imported>Doug Williamson (Link with Financial liability.) |
imported>Doug Williamson m (Amend links.) |
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1. | 1. ''Cash flow.'' | ||
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 rate.'' | ||
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 liability]] | * [[Financial liability]] | ||
* [[Forward rate agreement]] | |||
* [[Internal rate of return]] | * [[Internal rate of return]] | ||
[[Category:Cash_management]] | |||
[[Category:Financial_products_and_markets]] | |||
Revision as of 16:40, 25 March 2021
1. Cash flow.
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 rate.
Annual effective rate.
