Interest Rate Ceiling Related: interest rate cap. The maximum interest rate that may be charged. … [Read more...]
Interest Rate Differential – IRD
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Interest Rate Differential - IRD A differential evaluating the interest rate gap in between two similar assets that yield interest. Forex traders use IRDs in pricing forward exchange rates. … [Read more...]
Interest Rate Floor
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Interest Rate Floor An agreement relating to interest rates where the reference rate must decline below strike rate for payments to become due. … [Read more...]
Interest Rate on Debt
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Interest Rate on Debt Debt capital costs incurred by the firm. … [Read more...]
Interest Rate Parity Theorem
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Interest Rate Parity Theorem Difference in interest rate between two countries equals the difference seen between the spot rate and the forward foreign exchange rate. … [Read more...]
Interest Rate Risk
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Interest Rate Risk -Risk possible in the form of fluctuation in security value, arising from changes in interest rates. For example, price decline in a bond when interest rates rise. -For depository institutions, risk arising from any change in rates of interest that impact … [Read more...]
Interest Rate Swap
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Interest Rate Swap Formal understanding, that is legally binding between counterparties, outlining the terms of exchange of interest payments receivable periodically on a notional principal, which is a predetermined dollar amount. For example, one of the parties will receive … [Read more...]
Interest Shortfall
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Interest Shortfall Interest remaining due after loan payments are fulfilled. Occurs when the interest accrues but has not been accounted into the immediate payment actually made. … [Read more...]
Interest Subsidy
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Interest Subsidy The deduction of interest payments on the debt owed by a firm from the earnings before the tax due is calculated as per current taxation law provisions. … [Read more...]
Interest Tax Shield
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Interest Tax Shield Difference in the interest rates on bonds with the same maturity from two different sectors of the bond market. … [Read more...]
Intermarket Sector Spread
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Intermarket Sector Spread Difference in the interest rates on bonds with the same maturity from two different sectors of the bond market. … [Read more...]
Intermarket Spread Swaps
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Intermarket Spread Swaps Using the money manager’s prediction of readjustment of spreads among sectors of bond markets to exchange one bond for another. … [Read more...]
Intermediate-Term
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Intermediate-Term Generally denotes a one – ten year period. … [Read more...]
Intermediation
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Intermediation Related to disintermediation. Investing carried out through another financial entity. … [Read more...]
Internal Finance
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Internal Finance The funding generated inside the business by depreciation and retained earnings. … [Read more...]
Internal Growth Rate
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Internal Growth Rate The highest rate at which expansion can occur in a firm without external source of funding. Also represents growth that can be attributed to cash flows held back by the business. … [Read more...]
Internal Market
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Internal Market Compare with external market. The platforms where securities are issued and traded in both foreign market and domestic market in a nation. … [Read more...]
Internal Measure
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Internal Measure Time, as in number of days, over which operations can be funded without additional income by a firm. … [Read more...]
Internally Efficient Market
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Internally Efficient Market Operationally efficient market. Market where investors pay true costs for obtaining transactions services. … [Read more...]
International Bank for Reconstruction and Development – IBRD or World Bank
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International Bank for Reconstruction and Development - IBRD or World Bank Gives loans to nations for economically important projects at almost conventional terms. … [Read more...]
