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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.

Rate

See Interest Rate.

References in periodicals archive ?
Best Company, Ambest Road, Oldwick, New Jersey 08858 Number of companies rated (% with highest rating): 881 (7%) Rating scale *: A++, A+, A, A-, B, C, D, E
In either case, such asset-backed issues are private placements and, if rated, more cost effective than private equity or debt.
Some lenders don't realize that their underwriting was aggressive until their loans are packaged, rated and sold.