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Banking

Compound Interest

The interest that results from adding interest to the principal amount (loan, deposit, debt, etc). In this sense, interest earned...

Annual Compounding

The compounding of interest earned or paid on an interest-bearing instrument (e.g., bond, deposit, etc), or generally any type of...

Accrued Interest

The current value of the earned portion of the next coupon payment due on a bond or other fixed income...

Discount Rate

The interest rate that is used in discounting the cash flows of an instrument, firm or project to determine its...

IO

The interest-only (OI) portion of a mortgage loan. Financial institutions, especially mortgage financing firms, separate a series of interest payment...

Interest Only

The interest-only portion of a mortgage loan. Financial institutions, especially mortgage financing firms, separate a series of interest payment from...

Payment In Kind

The interest or dividend income that is paid by a borrower through the issuance of debt or stock (new securities)...

PIK

An abbreviation for payment in kind. It refers to interest or dividend income that is paid by a borrower through...

Simply Compounded

The interest rate is said to be simply compounded (simple compounding) if it is paid at the end of the...

Ex-Interest

"Ex" is Latin for without. Ex-interest means "without interest". An interest rate quotation norm that is used in quoting prices...