Nominal Interest Rate: The stated interest rate in a note or contract, which may differ from the true or effective interest rate, especially if the lender discounts the loan and advances less than the full amount.

 

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Nominal Interest Rate: The stated interest rate in a note or contract, which may differ from the true or effective interest rate, especially if the lender discounts the loan and advances less than the full amount.

Real Interest Rate: Your real interest rate is the interest rate you earn on an investment minus the rate of inflation. For example, if you're earning 6.25% on a bond, and the inflation rate is 2%, your real ra . . . View Full Definition

Accrued Interest: Accrued interest is the interest that accumulates on a fixed-income security between one interest payment and the next. The amount is calculated by multiplying the coupon rate, also called t . . . View Full Definition

Outright Rate: Actual forward rate expressed in dollars per currency unit, or vice versa.

Overlay Strategy: A strategy of using futures for asset allocation by pension sponsors to avoid disrupting the activities of money managers.

Ordinary Interest: Interest based on a 360-day year instead of a 365-day year, resulting in what can be a significant difference.

Operating Rate: The percentage of total production capacity of a company, industry, or country that is being used.

Open-Market Rates: Interest rates that are determined in the open market by supply and demand, as opposed to being set by the Federal Reserve Board.

Pac-Man Strategy: Takeover defense strategy in which the prospective acquiree retaliates against the acquirer's tender offer by launching its own tender offer for the other firm.

Paratext: In Gérard Genette's work, Paratext: Thresholds of Interpretation, Genette introduces the idea of 'paratext,' i.e., anything external to the text itself that influences the way we read a tex . . . View Full Definition