# IC

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## Import Certificate

A proposed system to lower the U.S. trade deficit. Under the system, exporters would be issued import certificates allowing them to import up to the total value they export. Exporters may then sell these certificates to importers, who need them to conduct their business. The concept would maximize the value of imports, allowing it to be no greater than the value of exports. While this is not technically a tariff, it has much the same effect. Import certificates were proposed by Warren Buffett in 2003.

## Information Coefficient

A measure of the correlation between expected and actual returns. The IC is used internally within a firm to judge the performance of individual financial forecasters. The IC is measured on a scale between 0 to 1, with 1 indicating no difference between expected and actual returns. An analyst with a consistently high IC on his/her predictions will likely receive promotions and bonuses, while one with low information coefficients will likely lose his/her job.

## Interest Cost (IC)

A comprehensive and time-adjusted measure of loan cost to the borrower.

IC on a Mortgage: IC is what economists call an “internal rate or return.” It takes account of all payments made by the borrower over the life of the loan relative to the cash received up front. On a mortgage, the cash received up front is the loan amount less all upfront fees paid by the borrower. On an ARM, IC captures the effect of interest rate changes on the monthly payment and the balance, but future rate changes must be assumed.

Formula: IC is (i) in the formula below:

L - F = P1 + P2/(1 + i)2 +… (Pn + Bn)/(1 + i)n
Where:

L = Loan amount

F = Points and all other upfront fees paid by the borrower P = Monthly payment

n = Month when the balance is prepaid in full

Bn = Balance in month n

IC Versus APR: IC differs from APR in the following ways: IC is measured over any time horizon, whereas APR assumes that all loans run to term. IC may be measured after taxes whereas APR is always measured before taxes. On an ARM, IC can be calculated on any interest rate scenario whereas APR always uses a no-change scenario.

References in periodicals archive ?
He is author of numerous books on railroad and transportation history, including American Railroads (1961), History of the Illinois Central Railroad (1975), and History of the Baltimore & Ohio Railroad (1987).
NARA, RG 13, Docket 4092, Association of Colored Railway Trainmen versus Illinois Central Railroad Company and Yazoo & Mississippi Valley Railroad Company.
In 1992, he wrote and published Con-glom-er-ate, the history of the evolution of the original Illinois Central Railroad into a diversified multinational conglomerate (1966 to 1987).
Illinois Central Railroad Company and Chicago, Central & Pacific Railroad Company, both subsidiaries of CNRC, were also named in the suit as operators of the train and track where the derailment occurred.
of office space; multiple cranes; seven drive-in doors and seventeen docks doors; and is rail served by Illinois Central Railroad.
In 1998 CN announced a plan to buy Illinois Central Railroad and struck a marketing alliance with Kansas City Southern Railway.
Prior to joining InsightExpress, Aloia worked as a Marketing Manager at the Canadian National / Illinois Central Railroad in Chicago, IL.

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