coupon-equivalent rate
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Coupon Equivalent Rate - CER — A alternative calculation of coupon rate used to compare zero coupon and coupon fixed income securities. Formula: Because the quoted rate of bonds is calculated according to face value, this rate for bonds issued at a discount is inaccurate for… … Investment dictionary
rate — The cost of debt service paid by a borrower or issuer to a lender or investor. The rate is expressed as an annual percentage of the amount borrowed. For some notes and bonds that pay interest semiannually, the semiannual interest due to the… … Financial and business terms
Interest rate swap — An interest rate swap is a derivative in which one party exchanges a stream of interest payments for another party s stream of cash flows. Interest rate swaps can be used by hedgers to manage their fixed or floating assets and liabilities. They… … Wikipedia
Floating rate note — Floating rate notes (FRNs) are bonds that have a variable coupon, equal to a money market reference rate, like LIBOR or federal funds rate, plus a spread. The spread is a rate that remains constant. Almost all FRNs have quarterly coupons, i.e.… … Wikipedia
adjustable-rate mortgage — ( ARM) A loan for which the interest rate ( coupon rate) is adjusted periodically to reflect changes in a previously selected index rate. ARMs may have caps and floors that limit the annual and/or the lifetime change in the coupon rate. American… … Financial and business terms
bond equivalent yield — An annual yield, expressed as a percentage, describing the return provided to bond holders. A bond equivalent yield is double the simple interest, semiannual yield. Since Treasury and agency notes and bonds, as well as most corporate and… … Financial and business terms
Auction rate security — An auction rate security (ARS) typically refers to a debt instrument (corporate or municipal bonds) with a long term nominal maturity for which the interest rate is regularly reset through a dutch auction. It could also refer to a preferred stock … Wikipedia
discount rate — The interest rate charged on loans by the Federal Reserve Bank. Chicago Board of Trade glossary The interest rate charged by the Federal Reserve to its member banks (banks which belong to the Federal Reserve System) for funds they borrow. This… … Financial and business terms
Short rate model — In the context of interest rate derivatives, a short rate model is a mathematical model that describes the future evolution of interest rates by describing the future evolution of the short rate.The short rateThe short rate, usually written r t… … Wikipedia
доходность в облигационном эквиваленте — Сравнение дисконтированного дохода и дохода по облигациям с купонами. Также наз. эквивалентным облигационным доходом по купонам (coupon equivalent rate) … Финансово-инвестиционный толковый словарь
