BNET Business Dictionary
Business Definition for: Interest Rate
- the amount of interest charged for borrowing a sum of money over a specified period of time
Additional Resources
- Term Structure of Interest Rates, Yield Curve Residuals, and the ConsIstent Pricing of Interest Rates and Interest Rate Derivatives
- Dynamic term structure models DTSMs price interest rate derivatives based on the model implied fair values of the yield curve, ignoring any pricing residuals on the yield curve that are either from model approximations or market imperfections. This paper proposes a new framework that consistently prices both interest rates and...
- White papers 2002-09-10
- The Learning Cost Of Interest Rate Reversals
- In this Paper, we suggest a new motivation for why central banks appear averse to reversing changes in their interest rate. We show, in a standard monetary model with forward-looking expectations, data uncertainty and parameter uncertainty, that there is a learning cost associated with interest rate reversals. A policy that...
- White papers 2003-12-01
- Rumors of Interest Rate Cuts Are Back on the Front Burner
- Trader Mark submits: Long time readers will know what we constantly talked about all fall and winter - the constant interest rate cuts from the Federal Reserve. Markets would trade +/- 2% on Fed days, because if the Federal Reserve cut rates it would solve all our ills. The market...
- External links 2008-09-11
- Fitch Assesses Interest Rate Swaps and Tax-Exempt Borrowers
- Business Editors NEW YORK--BUSINESS WIRE--Feb. 5, 2003 Fitch Ratings today published its guidelines for the analysis and assessment of variable rate debt and interest rate swaps and its impact on the credit of tax-exempt borrowers. Noting that the current trend of increased use of interest rate swaps has...
- Research articles 2003-02-05
- Why Is Interest Rate Swap Usage Responding to the Yield Curve? A Proposal
- Interest rate swaps provide for a particularly interesting experiment. Unlike the commonly-used forward and futures contracts employed by firms to modify their currency and commodity cash flow exposures, interest rate swaps have cash flow implications at multiple times over the full life of the derivative contract. This paper examines the...
- White papers 2004-02-13
- An Interest Rate Defense of a Fixed Exchange Rate?
- This white paper deals with a model, in which the interest rate is the passive reflection of currency-depreciation expectations. This paper shows how to adapt the KFG model to allow for an interest rate defense. It is shown that increasing domestic-currency interest rate makes domestic assets more attractive according to...
- White papers 2000-04-01
- On the Relationship Between the Very Short Forward and the Spot Interest Rate
- This paper revisits the relationship between the forward and the spot interest rate. In contrast to much of the literature the paper investigates the very short maturities. The "tomorrow next" rate is the forward interest rate, but has the same maturity as the overnight rate. The authors' estimate an asymmetry...
- White papers 2004-02-25
- FairPoint Fixes the Interest Rate on Additional Floating Rate Debt
- CHARLOTTE, N.C. -- FairPoint Communications, Inc. (NYSE:FRP) ("FairPoint") announced today that it has entered into two additional interest rate swap agreements. These swap agreements, together with FairPoint's three existing interest rate swap agreements, will fix the interest rate on approximately 83% of FairPoint's floating rate debt at a blended rate...
- Research articles 2005-04-07
- Irreversible Investment Under Interest Rate Variability: New Results
- This paper studies the impact of interest rate and revenue variability on the decision to carry out an irreversible investment project. Given the generality of the considered valuation problem, it first provides a thorough mathematical characterization of the problem and develops some new results. Contrary to what previous literature has...
- White papers 2003-12-11
- Fed interest-rate patience is not unlimited, according to Atlanta Fed President Jack Guynn.(Economy: how supply managers see high-tech business)(Brief Article)
- * Fed interest-rate patience is not unlimited, according to Atlanta Fed President Jack Guynn. If a high rate of economic growth pans out, the central bankers may consider raising interest rates, Guynn told business students at East Tennessee State * Fed interest-rate patience...
- Research articles 2004-04-15
- CREDIT SUISSE: CHINA MAY RAISE INTEREST RATE IN ONE MONTH
- AsiaInfo Services 07-17-2006 Credit Suisse: China May Raise Interest Rate in One Month BEIJING, Jul 17, 2006 SinoCast via COMTEX -- The possibility of a further increase in the benchmark interest rate in China in the coming month is considera ...
- Research articles 2006-07-17
- DEUTSCHE BANK: CHINA LIKELY TO RAISE INTEREST RATE
- AsiaInfo Services 06-23-2006 Deutsche Bank: China Likely to Raise Interest Rate BEIJING, Jun 23, 2006 SinoCast via COMTEX -- Deutsche Bank, the leading global investment bank, predicts China might raise the interest rate in nationwide, though AsiaInfo Services ...
- Research articles 2006-06-23
- Smoother way to trade interest rate swaps
- As liquidity grows in interest rate swap futures, traders will benefit from improved hedging and trading possibilities. However, to take advantage of these markets, you need to understand the relationships among futures on swaps, T-notes and Eurodollars. Electronic or automated, trading of interest rate swaps has created an...
- Research articles 2008-01-01
- Tyler, Too: The Troubling Myth of Interest-Rate Cuts
- Tyler, Gus Forward 01-04-2002 TYLER, TOO: The Troubling Myth of Interest-Rate Cuts On December 11 the Federal Reserve Board, under Alan Greenspan's direction, met again. It was the 11th time this year. And once more it cut the interest rate,...
- Research articles 2002-01-04
- Manage Your Interest Rate Risk
- As a business owner, you know that controlling risk is critical to success. One key risk is interest-rate volatility. Rising rates can have a double impact on businesses when borrowing costs rise at a time of declining sales. By hedging against the risk of rising rates, a small business can...
- White papers 2007-07-12
- CCB FIXES INTEREST RATE OF 5.508% FOR HOUSING LOANS
- AsiaInfo Services 03-30-2005 CCB Fixes Interest Rate of 5.508% for Housing Loans BEIJING, Mar 30, 2005 SinoCast via COMTEX -- China Construction Bank CCB hasdecided to carry out interest rate of 5.508 percent for housingloans. Thus, the China...
- Research articles 2005-03-30
- Kayne Anderson MLP Investment Company Announces Additional Interest Rate Swaps and Updates Its Asset Coverage Ratios
- Kayne Anderson MLP Investment Company (the "Company") (NYSE: KYN) announced today that it entered into additional interest rate swaps with notional value of $75 million at an average fixed swap rate of 3.25% with a tenor of 2.7 years. As a result of these transactions, the Company now has...
- Research articles 2008-10-15
- Federal Reserve Holds Interest Rate at 5.25%
- For a seventh straight time, the Federal Reserve on May 9 voted to keep the benchmark U.S. interest rate at 5.25%. The Fed last held the rate in March and has not raised the rate since last June, when it raised the rate by a quarter-point.For a seventh straight time,...
- Research articles 2007-05-14
- Interest rate swaps
- Interest rate swap agreements are private contracts that obligate two parties to exchange interest payments, usually every three or six months, for a set number of years. The contract is based on a notional principal amount that is never actually exchanged but serves as the reference amount against which the...
- Research articles 1996-08-01
- Interpreting Money-Supply and Interest-Rate Shocks as Monetary-Policy Shocks
- In this paper two shocks are analysed using Canadian data: a money-supply shock ("M-shock") and an interest-rate shock ("R-shock"). A permanent increase in the nominal stock of M1 generates: a temporary fall in the interest rate, consistent with the liquidity effect; a temporary rise in real output; a permanent increase...
- White papers 1996-07-01
