True Interest Cost

True Interest Cost

It is the coupon rate that can give an identical return for a security sold on a discount (like commercial paper). The assumption is that the coupon instrument (corresponding to the coupon rate) will have the same maturity and will payout interest as arrears.

Random Finance Terms for the Letter T

• Treasury Stock
• Trend
• Treynor Index
• Triangular Arbitrage
• Triple Witching Hour
• Triple Tax Free
• Trough
• True Interest Cost
• True Lease

Related posts:

1. True Lease
2. Triple Witching Hour
3. Triple Tax Free
4. Treasury Stock
5. Triangular Arbitrage