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Accrued Interest

The current value of the earned portion of the next coupon payment due on a bond or other fixed income...

Discount Rate

The interest rate that is used in discounting the cash flows of an instrument, firm or project to determine its...

IO

The interest-only (OI) portion of a mortgage loan. Financial institutions, especially mortgage financing firms, separate a series of interest payment...

Interest Only

The interest-only portion of a mortgage loan. Financial institutions, especially mortgage financing firms, separate a series of interest payment from...

Payment In Kind

The interest or dividend income that is paid by a borrower through the issuance of debt or stock (new securities)...

PIK

An abbreviation for payment in kind. It refers to interest or dividend income that is paid by a borrower through...

Simply Compounded

The interest rate is said to be simply compounded (simple compounding) if it is paid at the end of the...

Ex-Interest

"Ex" is Latin for without. Ex-interest means "without interest". An interest rate quotation norm that is used in quoting prices...

Next Accrued Interest

The net interest accrued on a bond since its last ex-dividend date. The following formula is usually used to calculate...

Interest Cover

An analytical tool that measures the ability of a firm to pay its interest obligations. It relates operating profit to...