floating rate

listen to the pronunciation of floating rate
English - Turkish
Dalgalı kur

Related Terms

floating rate note
değişken faiz oranlı tahvil
floating rate of exchange
dalgalı döviz kuru
floating exchange rate
dalgalı döviz kuru
floating rates
(Politika, Siyaset) dalgalı kurlar
freely floating exchange rate
(Ticaret) serbest dalgalanan kur sistemi
English - English
A finance term used to explain the spread on a variable interest rate loan Developers and builders often borrow money at an interest rate tied to the prime rate, for example, 'prime plus two ' This means that if the prime rate is 10% the builder pays 12% on the money borrowed However, if the prime increases to 11%, then the interest rate charged by the lender floats upward to, in this case, 13%
An interest rate that is benchmarked to other rates (such as the rate paid on U S Treasuries), allowing the interest rate to change as market conditions change
Rate of interest chargeable on a loan that is variable according to a specified index or the national prime rate The loan rate is said to "float" on top of the specified index by a set amount: i e the loan may be set at Prime Rate plus 2%, meaning if the Prime Rate is 6%, the loan interest rate will be 8%
is an interest rate that moves up or down, according to market interest rates
Rather than a fixed interest or coupon rate, some bonds and CDs have a floating interest rate which is adjusted periodically to market conditions It is also called Variable Rate
Also known as Variable Rate The interest rate charged on a mortgage that changes whenever your institution wants it to - almost always because of market or competitive pressures For existing borrowers, this rate can go up 'promptly' in response to market changes, but tends fall much more slowly Each time it changes, you do not necessarily have an automatic right to switch to a fixed rate - to do that you will have to enter into new negotiations with your institution (and possibly pay new fees) When considering a Variable or Floating rate, make sure you understand what will happen to your payments when the rate changes Will your a) payments go up or down? or, b) term of loan be lengthened or shortened? In both cases, each option can have a dramatic effect on the total amount of interest you will pay over the life of the loan
An interest rate which moves in line with market or benchmark rates instead of remaining constant for the life of the loan
A situation where the interest rate or rate of exchange is determined solely by market forces
A dividend rate for preferred stock that is tied to the bank prime interest rate (See Refer to page 472)
An interest rate which moves in line with market or benchmark rates instead of remaining constant for the life of the loan Gearing: The ratio of your own loan amount to the value of your security
Interest rate that is reset periodically, usually every couple of months or sometimes daily

Related Terms

floating exchange rate
exchange rate that changes according to the market's buyers
floating interest rate
interest rate that changes according to the market's buyers
floating rate

    Hyphenation

    float·ing rate

    Turkish pronunciation

    flōtîng reyt

    Pronunciation

    /ˈflōtəɴɢ ˈrāt/ /ˈfloʊtɪŋ ˈreɪt/
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