Market Rate: The rate of interest a company must pay to borrow funds currently. Program-related investments generally are offered at below market rates or at no interest rate.

 

Related Words

Market Rate: The rate of interest a company must pay to borrow funds currently. Program-related investments generally are offered at below market rates or at no interest rate.

Adjustable Rate: Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or sa . . . View Full Definition

Variable-Rate Demand Note: Short-term certificate of deposits that pay interest periodically on roll dates. On each roll date, the coupon on the CD is adjusted to reflect current market rates.

Adjustable Rate Mortgage (ARM): A loan with an interest rate that changes during the term of the loan. The payments generally increase or decrease with the interest rate. Rate is based on one of several 'index' options.

Floating Rate: A debt security or corporate preferred stock whose interest rate is adjusted periodically to reflect changing money market rates is known as a floating rate instrument. These securities, for . . . View Full Definition

Blended Rate: An interest rate for a newly financed loan that is higher than the existing rate but lower than the current market rate.

Variable-Rate Loan: A note that is payable on demand and bears interest tied to a money market rate.

Fixed-Rate Mortgage: A fixed-rate mortgage is a long-term loan that you use to finance a real estate purchase, typically a home. Your borrowing costs and monthly payments remain the same for the term of the loan . . . View Full Definition

Nitrate Base: Was an early flexible film support which was highly inflammable.

Nominal Annual Rate: An effective rate per period multiplied by the number of periods in a year. Same as annual percentage rate.