Reference period: Difference between revisions
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imported>Doug Williamson (Created page with "''Interest rates - quotation.'' A period of time in relation to which an amount of interest payable or receivable is ''quoted''. In wholesale markets, this period is almos...") |
imported>Doug Williamson (Mend link.) |
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* [[Accrue]] | * [[Accrue]] | ||
* [[Accrued interest]] | * [[Accrued interest]] | ||
* [[Annual | * [[Annual percentage rate]] (APR) | ||
* [[Credit]] | * [[Credit]] | ||
* [[Day count conventions]] | * [[Day count conventions]] | ||
Revision as of 19:52, 7 March 2022
Interest rates - quotation.
A period of time in relation to which an amount of interest payable or receivable is quoted.
In wholesale markets, this period is almost always a year.
- Interest - counting days - conventions
- "The day count convention determines how interest accrues over time in a variety of transactions...
- In wholesale markets interest is usually expressed to accrue at a rate per annum (the reference period).
- It is often due and payable at shorter intervals, usually a number of months (the interest period)."
- Day count conventions - the Treasurer's wiki.
In retail markets, reference periods - especially for borrowing - may sometimes be shorter.
However, it is generally mandatory for the provider of retail credit to quote an Annual Percentage Rate - or other appropriate comparator rate, depending on the jurisdiction - in addition to the reference rate.
