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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...

Next Accrued Interest

The net interest accrued on a bond since its last ex-dividend date. The following formula is usually used to calculate...

Interest Cover

An analytical tool that measures the ability of a firm to pay its interest obligations. It relates operating profit to...

Annual Percentage Rate

The interest rate (charged for borrowing or made by investing) as calculated on an annualized basis including any respective fees...