interest rate 利率
A rate which is charged or paid for the use of money. An interest rate is often expressed as an annual percentage of the principal. It is calculated by dividing the amount of interest by the amount of principal. Interest rates often change as a result of inflation and Federal Reserve Board policies. For example, if a lender (such as a bank) charges a customer $90 in a year on a loan of $1000, then the interest rate would be 90/1000 *100% = 9%. From a consumer's perspective, the interest rate is expressed as annual percentage yield (APY) when the interested is earned, for example, from a savings account or a certificate of deposit. When the interest is paid, for example, for a credit card, a mortgage, or a loan, the interest rate is expressed as annual percentage rate (APR).
variable rate
base rate 基本利率
base interest rate
floating rate
fixed rate 固定利率
Floating interest rates
A floating rate is an interest rate that will change over time in line with a benchmark rate.
A floating rate is usually fixed at a fixed premium in percentage points (or basis points) above a market rate such as LIBOR, a particular bank's declared base rate or a central bank's official base rate.
A wide variety of debt instruments pay floating rates.
In contrast, fixed income interest rates do not change over time. If a £100 bond pays 10% fixed interest it will pay £10 every year.
A security that pays interest at a floating rate will have lower interest rate risk than a similar security that pays fixed interest. This is because the coupon payments rise together with the discount rate.
An interest
rate that is allowed to move up and down with the rest of the market or along
with an index. This contrasts with a fixed interest rate, in which the interest
rate of a debt obligation stays constant for the duration of the
agreement.
A floating interest rate can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation.
A floating interest rate can also be referred to as a variable interest rate because it can vary over the duration of the debt obligation.
Investopedia Says:
For example, residential mortgages can be obtained with a fixed interest
rate, which is static and can't change for the duration of the mortgage
agreement, or with a floating interest rate, which changes periodically
with the market. In the case of floating interest rates in mortgages, and most
other floating rate agreements, the prime lending rate is used as a basis
for the floating rate, with the agreement stating that the interest rate charged
to the borrower is the prime interest rate plus a certain
spread.
Coupon Rate
A bond's coupon rate can be calculated by dividing the sum of the
security's annual coupon payments and dividing them by the bond's par value. For
example, a bond which was issued with a face value of $1000 that pays a $25
coupon semi-annually would have a coupon rate of 5%. All else held equal, bonds
with higher coupon rates are more desirable for investors than those with lower
coupon rates.
Coupon
LIBOR
Prime rate
The interest
rate that commercial
banks charge
their most creditworthy borrowers, such as
large corporations. The
prime rate is a lagging
indicator. also called prime