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effective rate of interest |
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Under the constant-yield method, interest is accrued by applying an effective rate of interest to the unpaid balance of a loan for a given period. It indicates the effective rate of interest paid per year. During the second quarter of 2005, GTI exited $285 million notional amount of existing interest rate swaps at a cost of approximately $5 million, thereby converting the effective rate of interest on the underlying debt back to a fixed rate. |
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