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 ?
The 2017A bonds received eight bids and the bonds were awarded to Bank of America Merrill Lynch with a true interest cost of 4.
True Interest Cost = underwriter compensation + reoffering yield
Miami-Dade County s aviation revenue bonds earned a true interest cost of 4.
On the consumer-credit front, the Truth in Lending Act of 1968 required the true interest cost of a loan to be stated in simple and transparent terms.
8 million in taxable bonds, with all "AAA" rated (a Moodys Investors Service rating) bonds possessing a final maturity date of 2038 and a true interest cost of 5.
The bid was awarded on the basis of the true interest cost (almost 4.
This can happen if the earnings of the fund over the life of the pension bonds are less than the true interest cost on the bonds.
The innovative financing structure enabled the District to borrow at a true interest cost of 6.
6 percent all-in true interest cost - which factors in all costs - for projects in the auxiliary system and $10.