The fluctuations, called adjustments, boost or drop the initial interest rate
and can occur monthly, quarterly, semiannually, or annually.
These callable/puttable bonds effectively bundle an interest rate
option with a puttable debt instrument.
Kevin Stoklosa, a FASB project manager, explained the reasoning behind the amendment provisions related to hedges of interest rate
risk and hedges of foreign-currency-denominated assets and liabilities.
As part of its package to finance the Uruguay Round agreement of the General Agreement on Tariffs and Trade (GATT), the Department of the Treasury has proposed a reduction in the interest rate
paid on certain tax refunds.
TABULAR DATA OMITTED This would be a significant roll-back of the current rules, which permit deferrals of gains and losses on qualifying hedges involving interest rate
and commodity futures (SFAS 80) and on purchased foreign currency options (EITF Issue No.
The interest rate
yield curve had been positively sloped for six months, and both the Commerce Department and National Bureau of Economic Research indexes of leading indicators were signaling continued economic expansion.
When conventional monetary stimuli were ineffective following the bursting of the so-called "bubble" economy, the Bank of Japan rolled out its zero interest rate
policy in February 1999 and initiated its quantitative easing strategy in March 2001.
He plans to pay for the construction by refinancing his 30-year fixed-rate mortgage at an interest rate
The ZAG members also advised investors to keep in mind that interest rate
adjustments are a good thing in the long run.
The task sounds easy until you learn that two critical facts are not yet known: the interest rate
and the term of the loan.