Category: I

Definition The interest rate is the amount a lender charges for the use of assets expressed as a percentage of the principal. It is typically

Definition Interest rate options are financial derivatives that allow the holder to benefit from changes in interest rates. They offer the buyer the right, but

Definition An interest rate call option is a financial derivative contract that gives the holder the right, but not the obligation, to profit from rising

Definition Interest Rate Differential (IRD) is a financial term used to compare interest rates between two different investment opportunities or loan options. It is calculated

Definition An Interest Rate Derivative is a financial contract whose value is based on underlying interest rates. Its main purpose is to transfer the interest

Definition Interest expense refers to the cost incurred by an entity for borrowed funds. It is the price paid for using someone else’s money, usually

Definition An interest rate collar is a derivative contract used to hedge against interest rate fluctuations. It consists of two parts: an interest rate cap

Definition An interest rate floor is a financial contract between two parties that sets a minimum base rate of interest for a specified period of

Definition An Interest Rate Future is a futures contract with an interest-bearing instrument as the underlying asset. It is a financial derivative used to hedge

Definition An interest-only mortgage is a type of loan where the borrower is only required to pay off the interest that arises from the principal