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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.


See Interest Rate.

References in periodicals archive ?
That's because long term rates tend to reflect a longer term view of the overall economy in terms of growth and inflation.
With economists projecting several interest rate hikes through 2006, financial advisers say now is the time for borrowers to take a second look at the loan terms of adjustable-rate mortgages.
The great disparity between short and long term rates bas created one of the steepest yield curves in history.
That uncertainty made it difficult to marshal support for a preemptive attack on inflation--that is, for raising interest rates in anticipation of a rise in inflation.
They should move dividend-paying stocks to taxable accounts, because of the significantly lower dividend tax rates.
As an additional matter, Premier McGuinty's letter of September 16, 2003, to the Chief Election Officer said that the new government would "maintain all existing other corporate taxes at today's rates.
Therefore, it makes sense--and saves time and money as well--to base company-specific rates on a standard template and deal with the 20% of exceptions only where necessary, rather than starting from ground zero each time.
permeation rates were measured on one type of fuel.
Expectations of monetary tightening were reflected in forward rates, with three-month rates on December Eurodollar futures rising nearly 60 basis points from April 1 to mid-June.
With the market approach, you let forward exchange rates and your observations on currency volatility guide your choices.
The sharp increase in interest rates that peaked in 1980 changed the situation.
With more people uninsured, providers and hospitals would experience increased bad debt, which would then be passed on to the community through higher rates.