What is the 'interest rate'? Definition & meaning

More terms

Yield curve

A graphical representation of interest rates over time

Equity

The amount of money a company would be left with by subtracting its liabilities from the value of its assets.

Internal Rate of Return (IRR)

A means of calculating the potential future return on an investment.

Packaged Retail and Insurance-based Investment Product (PRIIP)

An investment where, regardless of its legal form, the amount repayable to the retail investor is subject to fluctuations.

Profit and Loss Statement (P&L)

A statement that summarises firm's expenses, costs, and revenues incurred during a time period. AKA income statement.

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

Venture Capital Trust (VCT)

A listed company run by a fund manager, investing mainly in private companies.e.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

W-8BEN Form

Non-US individuals and businesses may have to file this form for the Internal Revenue Service (IRS), the US tax authority.

Interest Rate