584) (3,014)

Interest rate floor under 2014 First Lien Credit

Since the

interest rate floor resets on every contract anniversary date, just as annuity index floors do, the client has the potential for new credits based on interest rate increases, regardless of the previous year's ups or downs.

Treasury bonds, due to their security, gauge interest rates by setting the

interest rate floor of financial markets.

1256(b)(2) to provide that no "interest rate swap, currency swap, basis swap, interest rate cap,

interest rate floor, commodity swap, equity swap, equity index swap, credit default swap, or similar agreement" would be treated as a Sec.

However, at the same time it will be tied to an

interest rate floor of 2.

Home loans today pierced the

interest rate floor of 8 per cent that the State Bank of India had set in earlier this year.

Interest Rate Collar--An agreement in which one party purchases an interest rate cap and sells an

interest rate floor and the other sells an interest rate cap and buys an

interest rate floor.

For the Federal Reserve to be able to set a similar

interest rate floor, it would need expanded legislative authority, for example, to pay interest on excess reserves.

the simultaneous purchase of an interest rate cap option and the sale of an

interest rate floor option--should be accorded hedging treatment.

584) (3,039)

Interest rate floor under 2014 First Lien Credit

Survivorship Plus IUL gives policyholders a minimum annual 2%

interest rate floor on policy value accumulation that will be credited monthly, a guarantee that the policy cap percentage on potential indexed interest will never be less than 10% and most importantly, a no-lapse death benefit rider that can extend guaranteed protection up to age 121 of the younger insured.

For example, an

interest rate floor requires that the dealer pay the servicer an interest spread on a notional principal amount (a theoretical or imaginary amount) when the market interest rate declines below a specified strike price (the floor).