See Also: True interest cost(money)
True interest cost(finance)
Net interest cost (NIC)(finance)
Net interest cost (NIC)(money)
Prime cost or direct cost(finance)
true(2)(dictionary)
true(1)(dictionary)
True lease(finance)
true ribs(medicine)
true north(dictionary)

True interest cost (finance)


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.