interest rate

interest rate

The percentage that a borrower must pay as a price for borrowing money. An interest rate is the rate at which interest is paid by borrowers for the use of money that they borrow from a lender.

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Part of Speech: noun
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Industry/Domain: Financial services
Category: Financial instruments
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Related terms

interest rate

Banking; Investment banking

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets. I.e.: Borrowing $1,000 at a 5% annual interest rate means that you ...

interest rate

Financial services; Financial instruments

The percentage that a borrower must pay as a price for borrowing money. An interest rate is the rate at which interest is paid by borrowers for the use of money that they borrow ...

interest rate

Banking; Investment banking

The rate of interest for a year expressed as a percentage of the capital. See also accrued interest, variable interest rate.

interest rate

Economy; Economics

Interest is usually expressed at an annual rate: the amount of interest that would be paid during a year divided by the amount of money loaned. Developed economies offer many ...

interest rates

Economy; Economics

The rate at which interest is paid by a borrower for the use of money that they borrow from a lender.

interest rate

Business services; Relocation

The percentage of an amount of money which is paid for its use for a specified time.

put option

Financial services; Financial instruments

A financial term used in the derivatives market. A put option gives its holder the right to sell an asset for a specified price (strike price) on or before a specified expiration ...

underlying asset

Financial services; Financial instruments

A technical term used with financial derivatives instruments. A derivative contract such as options swaps futures, is a financial instrument that bases (derives) its value from a ...

expiration date

Financial services; Financial instruments

A financial term used in the derivatives market. The expiration date is a date specified in a financial contract beyond which the financial contract ceases validity. The financial ...

call option

Financial services; Financial instruments

Term used to describe a financial contract in the derivatives market. A call option gives the holder (purchaser of the option) the right to purchase the underlying asset for a ...

strike price

Financial services; Financial instruments

Technical term used in the financial derivatives market. A strike price is an agreed-upon price by two parties at which to exchange an underlying financial asset in the future.

premium

Financial services; Financial instruments

A financial term used in the derivatives market. The premium represents the price paid to own the option contract. It is a compensation paid upfront to the writer of the option in ...