True interest cost


Also found in: Acronyms.

True interest cost

For a security such as commercial paper that is sold on a discount basis, true interest cost is the coupon rate required to provide an identical return assuming a coupon-bearing instrument of like maturity that pays interest in arrears.
References in periodicals archive ?
1 billion in bonds at the lowest true interest cost for any large public power issue in the United States since at least l977.
1 billion in debt at the lowest true interest cost for a large public power bond issue since 1977, saving $370 million in debt payments.
2 billion bond issue at a true interest cost which was the lowest for any large public power issue in the United States since 1977.
1 billion bond refunding in August, which carried the lowest true interest cost of any major public power bond issue since the 1970s, will save Power Authority customers $370 million in lower debt payments over the life of the bonds.
We've achieved the lowest true interest cost of any long-term public power offering in the nation this year," said Flynn.
The bonds were issued with a true interest cost of 5.
8 million were sold yesterday with a lower true interest cost of 5.
The bonds were sold with a true interest cost of 6.
The firm will purchase the entire bond issue at a true interest cost of 3.