Meaning BENCHMARK INTEREST RATE: Also called the base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturity offered on the comparable-maturity Treasury security that was most recently issued (on-the-run)
More terms such as Benchmark interest rate in Dictionary B.
- Definition Back Up:
- Examples 1) When bond yields rise and prices fall, the market is said to backup. (2) An investor who swaps out of one security into another of shorter current maturity is said to back up benchmark interest rate definition.
- Definition Bond Value:
- Examples With respect to convertible bonds, the value the security would have if it were not convertible. That is the market value of the bond minus the value of the conversion option benchmark interest rate explain.
- Definition B:
- Examples Fifth letter of a Nasdaq stock descriptor specifying that issue is the Class B shares of the company benchmark interest rate what is.
- Definition Break-Even Payment Rate:
- Examples of an MBS coupon that will produce the same cash flow yield (CFY) as that of a predetermined benchmark MBS coupon. Used to identify for coupons higher than the benchmark coupon the prepayment rate benchmark interest rate meaning.
- Definition Back-Testing:
- Examples Creating a hypothetical portfolio performance history by applying current asset selection criteria to prior time periods benchmark interest rate abbreviation.
