# rate of interest

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Related to rate of interest: effective rate of interest, Nominal Rate of Interest

## Rate of interest

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

## Interest Rate

The percentage of the value of a balance or debt that one pays or is paid each time period. For example, if one holds a bond with a face value of $1,000 and a 3% interest rate payable each quarter, one receives $30 each quarter. The percentage of the interest rate remains constant (usually), but the amount one pays or is paid changes according to the amount of the balance or debt. For example, if one pays off part of the principal on a loan each month, the amount one pays in interest decreases even though the rate remains the same. See also: Time Value of Money.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

## rate of interest

see INTEREST RATE.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson

## rate of interest

see INTEREST RATE.Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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