Interest Rate
The rate expressed as a percentage of the principal amount of a bond used to determine the amount of interest to be paid by the issuer or the borrower.
A type of derivative, in which the Interest Rate on the Bonds is swapped, or exchanged, by the Issuer for an agreed-upon Fixed Rate or Variable Rate based upon an index, calculated on a notional principal amount. The payments are generally netted against each other, with the party owing the greater amount paying the other on a periodic basis. The swap is not a debt instrument, and the notional principal amount is not a payment obligation, but merely the vehicle for calculating swapped payments.
The rate expressed as a percentage of the principal amount of a bond used to determine the amount of interest to be paid by the issuer or the borrower.
An interest rate which is set at the time a bond is issued and which does not vary during the term of the bond.
The interest rate on a bond which varies according to a formula set forth in the bond or the indenture or bond resolution/ordinance or based on the interest rate required by a remarketing agent to remarket the bonds at par.
The approval of the bond issue by the appropriate governmental unit after a TEFRA hearing.