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imported>Doug Williamson |
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| The quarterly rate of interest (or yield) is a quoting convention for the simple interest ''nominal annual rate'' for compounding once per quarter (four times per year).
| | A type of instrument that is a hybrid between debt and equity. |
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| Coupon rates on instruments paying interest four times per year are often expressed as quarterly rates.
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| This makes rates broadly comparable, while also enabling the amounts of fixed interest payments and receipts to be determined easily.
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| '''Example'''
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| If the quoted quarterly rate is 6.00%,
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| the amount of interest compounded quarterly is:
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| = 6.00% / 4
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| = 1.50%.
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| Not to be confused with the related ''annual effective'' rate, which in this case is:
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| = 1.015<sup>4</sup> - 1
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| = 6.14%.
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| == See also == | | == See also == |
| * [[Annual effective rate]] | | * [[Debt]] |
| * [[Nominal annual rate]] | | * [[Equity]] |
| * [[Periodic rate of interest]]
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| * [[Semi-annual rate]]
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| [[Category:Manage_risks]]
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Revision as of 11:27, 22 June 2016
A type of instrument that is a hybrid between debt and equity.
See also
