Interest Rate Agreement

Interest Rate Agreement
A formal agreement wherein one party undertakes to compensate the other whenever the reference rate (designated rate) varies from a strike rate (predetermined level). This compensation is assured by the party in return for an upfront premium.

Related posts:

  1. Forward Rate Agreement (FRA)
  2. Equity Floor
  3. Interest Rate Cap
  4. Interest Rate Swap
  5. Interest Rate Floor

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