Common Interest: The percentage of undivided ownership in the common elements belonging to each condominium apartment, as established in the condominium declaration.

 

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Common Interest: The percentage of undivided ownership in the common elements belonging to each condominium apartment, as established in the condominium declaration.

Interest Rate Risk: The chance that a security's value will change due to a change in interest rates. For example, a bond's price drops as interest rates rise. For a depository institution, also called funding . . . View Full Definition

Interest Rate Swap: A binding agreement between counterparties to exchange periodic interest payments on some predetermined dollar principal, which is called the notional principal amount. For example, one part . . . View Full Definition

Interest Rate Parity Theorem: Expression that the interest rate differential between two countries is equal to the difference between the forward foreign exchange rate and the spot rate.

Interest Rate On Debt: A futures contract based on an interbank deposit rate or an underlying debt security. The value of the contract rises and falls inversely to changes in interest rates.

Interest Rate Floor: An interest rate agreement in which payments are made when the reference rate exceeds the strike rate. Also called an interest rate ceiling.

Interest Rate Futures Contract: An interest rate agreement in which payments are made when the reference rate falls below the strike rate. Related: Interest rate cap.

Interest Subsidy: The value of a firm's deduction of the interest payments on its debt from its earnings before calculation of its tax bill under current tax law.

Interest Tax Shield: The reduction in income taxes that results from the tax-deductibility of interest payments.

Interest-Rate Risk: Interest-rate risk describes the impact that a change in current interest rates is likely to have on the value of your investment portfolio. You face interest-rate risk when you own long-ter . . . View Full Definition