Rate

interest rate 利率

A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of inflation and Federal Reserve Board policies. For example, if a lender (such as a bank) charges a customer $90 in a year on a loan of $1000, then the interest rate would be 90/1000 *100% = 9%. From a consumer's perspective, the interest rate is expressed as annual percentage yield (APY) when the interested is earned, for example, from a savings account or a certificate of deposit. When the interest is paid, for example, for a credit card, a mortgage, or a loan, the interest rate is expressed as annual percentage rate (APR).

variable rate

Any interest rate or dividend that changes on a periodic[ˌpiəri'ɔdik]定期的 basis. Variable rates are often used for convertibles, mortgages抵押按揭, and certain other kinds of loans. The change is usually tied to movement of an outside indicator, such as the prime interest rate. Movement above or below certain levels is often prevented by a predetermined floor and ceiling for a given rate. also called adjustable rate.

base rate 基本利率

The interest rate that British banks charge to their best customers. Similar to the prime rate in the U.S.

base interest rate

The minimuminterest rateinvestors will accept for investing in a non-Treasury security. In general, this is the yield that is being earned on the most recent on-the-run Treasury security of similar maturityplus a premium. also called benchmark interest rate.

floating rate

Any interest rate that changes on a periodic basis. The change is usually tied to movement of an outside indicator, such as the prime interest rate. Movement above or below certain levels is often prevented by a predetermined floor and ceiling for a given rate. For example, you might see a rate set at "prime plus 2%". This means that the rate on the loan will always be 2% higher than the prime rate, which changes regularly to take into account changes in the inflation rate. For an individual taking out a loan when rates are low, a fixed rate loan would allow him or her to "lock in" the low rates and not be concerned with fluctuations. On the other hand, if interest rates were historically high at the time of the loan, he or she would benefit from a floating rate loan, because as the prime rate fell to historically normal levels, the rate on the loan would decrease. also called adjustable rate.

 

fixed rate 固定利率

A loan in which the interest rate does not change during the entire term of the loan. opposite of adjustable rate.

 

Floating interest rates

A floating rate is an interest rate that will change over time in line with a benchmark rate.

A floating rate is usually fixed at a fixed premium in percentage points (or basis points) above a market rate such as LIBOR, a particular bank's declared base rate or a central bank's official base rate.

A wide variety of debt instruments pay floating rates.

In contrast, fixed income interest rates do not change over time. If a £100 bond pays 10% fixed interest it will pay £10 every year.

A security that pays interest at a floating rate will have lower interest rate risk than a similar security that pays fixed interest. This is because the coupon payments rise together with the discount rate. 

An interest rate that is allowed to move up and down with the rest of the market or along with an index. This contrasts with a fixed interest rate, in which the interest rate of a debt obligation stays constant for the duration of the agreement.

A floating interest rate can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation.

Investopedia Says:

For example, residential mortgages can be obtained with a fixed interest rate, which is static and can't change for the duration of the mortgage agreement, or with a floating interest rate, which changes periodically with the market. In the case of floating interest rates in mortgages, and most other floating rate agreements, the prime lending rate is used as a basis for the floating rate, with the agreement stating that the interest rate charged to the borrower is the prime interest rate plus a certain spread.

Coupon Rate

A bond's coupon rate can be calculated by dividing the sum of the security's annual coupon payments and dividing them by the bond's par value. For example, a bond which was issued with a face value of $1000 that pays a $25 coupon semi-annually would have a coupon rate of 5%. All else held equal, bonds with higher coupon rates are more desirable for investors than those with lower coupon rates.

 

Coupon

The interest rate stated on a bond when it's issued. The coupon is typically paid semiannually.

This is also referred to as the "coupon rate" or "coupon percent rate."

 

The interest rate stated on a bond, note or other fixed income security, expressed as a percentage of the principal (face value). also called coupon yield.

 

LIBOR

London Inter-Bank Offer Rate. The interest rate that the bankscharge each other for loans (usually in Eurodollars). This rate is applicable to the short-term international interbank market, and applies to very large loans borrowed for anywhere from one day to five years. This market allows banks with liquidity requirements to borrow quickly from other banks with surpluses, enabling banks to avoid holding excessively large amounts of their asset base as liquid assets. The LIBOR is officially fixed once a day by a small group of large London banks, but the rate changes throughout the day

Prime rate

The interest rate that commercial banks charge their most creditworthy borrowers, such as large corporations. The prime rate is a lagging indicator. also called prime

 

 

 

来自为知笔记(Wiz)