Interest cost is one measure of loan economics. However, other measures such as lender fees and loan closing costs, tax benefits and consequences, principal reduction, and opportunity costs in the form of re-investment rates should also be included in a thorough analysis of loan choices.
Investment dictionary. Academic. 2012.
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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. Bloomberg … Financial and business terms
True Interest Cost - TIC — The real cost of taking out a loan. True interest cost includes all ancillary fees and costs, such as finance charges, possible late fees, discount points and prepaid interest, along with factors related to the time value of money. It can also… … Investment dictionary
True interest cost — For a security such as commercial paper that is sold on a discount basis, the coupon rate required to provide an identical return assuming a coupon bearing instrument of like maturity that pays interest in arrears. The New York Times Financial… … Financial and business terms
Net Interest Cost (NIC) — A mathematical formula that an issuer of bonds uses to compute the overall interest expense that is associated with their bonds, which they will have to pay. The formula for net interest cost (NIC) is based on the average coupon rate weighted to… … Investment dictionary
net interest cost — ( NIC) The total amount of interest that will be paid on a debt obligation by a corporate or municipal bond issuer. Bloomberg Financial Dictionary … Financial and business terms
true interest cost — Fin the effective rate of interest paid by the issuer on a debt security that is sold at a discount … The ultimate business dictionary
interest — the cost of borrowing money. Glossary of Business Terms What is paid to a lender for the use of his money and includes compensation to the lender for three factors: 1) Time value of money (lender s rate) the value of today s dollar is more than… … Financial and business terms
Interest — The price paid for borrowing money. It is expressed as a percentage rate over a period of time and reflects the rate of exchange of present consumption for future consumption. Also, a share or title in property. The New York Times Financial… … Financial and business terms
Cost–benefit analysis — (CBA), sometimes called benefit–cost analysis (BCA), is a systematic process for calculating and comparing benefits and costs of a project for two purposes: (1) to determine if it is a sound investment (justification/feasibility), (2) to see how… … Wikipedia
Cost of delay — is the cost to bear as a result of delay in investment. Any delay in making an investment leads to a cost/loss. The accrued interest on the investment for the duration of the delay has a significant effect on the net returns. The cost grows with… … Wikipedia