HomeDefinitionsCompareDebt True interest costThe financial definition for True interest cost:For a security such as commercial paper that is sold on a discount basis, true interest cost is the coupon rate required to provide an identical return assuming a coupon-bearing instrument of like maturity that pays interest in arrears. Similar MatchesAmortizing interest rate swapAmortizing interest rate swapSwap in which the principal or notional amount rises (falls) as interest rates rise (decline). And interestAnd interestAn indication that the buyer will receive accrued interest in addition to the price quoted for a bond. Any interest dateAny interest dateA call provision in a municipal bond indenture that establishes the right of redemption for the issuer on any interest payment due date. Further SuggestionsAssumed interest rateBest interests of creditors test Capitalized interest Cash flow after interest and taxes Compound interest Consumer interest Covered interest arbitrage Click to compare definitions of True interest cost Click to view definitions beginning tr |