true interest cost

true interest cost
For a security such as commercial paper that is sold on a discount basis, true interest cost is the coupon rate required to provide an identical return assuming a coupon-bearing instrument of like maturity that pays interest in arrears. Bloomberg Financial Dictionary

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true interest cost UK US noun [S] (ABBREVIATION TIC, also true interest rate ) FINANCE
the real cost of interest on loans, including charges, etc.: »

The group set the true interest cost at 5.6%.

»

Prices rose sharply so the true interest rates charged by the market fell to their lowest in several years.


Financial and business terms. 2012.

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