Blended Rate

Blended Rate

1. A weighted average interest rate on all of a person's or company's debt. The blended rate provides the aggregate interest rate for debt. For example, if one pays 5% on $50,000 in debt and 10% on $25,000 in other debt, the blended rate is calculated as:

Blended Rate = (50,000 * 0.05 + 25,000 * 0.10) / 75,000 = 6.67%.

2. When refinancing a loan, an interest rate higher than the previous rate, but lower than the rate the bank would charge on a new loan. A blended rate may be used after a bank has raised its prevailing rates.
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The two-year loans have a blended rate in the mid 5.
Most companies don't buy directly from the spot market, but have some kind of blended rate base, which might change on a month-to-month basis.
The unitranche is a type of financing that combines senior and subordinated into one instrument; the borrower pays one single combined profit rate to one lender, and the blended rate falls between the rate for senior and subordinated notes.
Residential customers pay one "blended" rate covering both consumption and demand, but commercial, industrial and institutional customers' demands may vary greatly because they may need large amounts of power intermittently, causing peaks in demand, so they don't get a blended rate.
Google used the blended rate per currency earned on its existing liquidity investments as a benchmark.
Hilliou, the company chairman and chief executive officer, said, 'We are pleased that we were able to quickly obtain financing commitments for this acquisition at an attractive overall blended rate, which is a testament to our management team, strong cash flow and balance sheet.
It is estimated that the new blended rate of interest for the group will be 7.
BPA historically has provided local public utilities with all the electricty they wanted, and if the BPA's dams weren't generating enough, BPA would buy more power from other sources and sell it at a blended rate to local utilities, Robertson said.
The average blended rate for residential property in Dubai in quarter three was Dh1,919 per square foot, according to Colliers quarter three house price index.
H&R Block said that because of the age of the Block Texas franchise agreement, it included an "unusually low" royalty blended rate of 6 percent on revenue, compared with a contractual rate of 30 percent on new franchise agreements.
Demographic models, blended rate models, rate structures based on predictive modeling forecasts or combinations are the inevitable future.