The yield on a debt as calculated from the purchase price. A more accurate measure of the return on a bond investment than the simple coupon payment. Computed using both the capital gain from price appreciation and the bond's yield.
Related information about effective rate:
- Effective interest rate - Wikipedia, the free encyclopedia
The effective interest rate, effective annual interest rate, annual equivalent rate ( AER) or simply effective rate is the interest rate on a loan or financial product ...
- Effective Rate - Financial Dictionary - The Free Dictionary
A measure of the time value of money that fully reflects the effects of compounding. Effective Interest Rate. The interest rate on a debt or debt security that takes ...
- Effective Annual Interest Rate Definition | Investopedia
An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following:
- Annual Effective Rate Calculator | Investopedia
Annual Effective Rate Calculator - An investment's annual rate of interest when compounding occurs more often than once a year.
- Effective Interest Rate Calculator
... 0.0722 = 7.22%. The formula can be written as: r = [ (1+i/n)^n ] - 1,. where r is the effective rate, i is the stated rate and n is the number of compounding periods.
- What is effective rate? definition and meaning
Definition of effective rate: The yield on a debt as calculated from the purchase price. A more accurate measure of the return on a bond investment than the ...
- Federal Funds Effective Rate US Analysis - FEDL01 - Bloomberg
Analysis & trends for Federal Funds Effective Rate US (FEDL01) including current rate, chart, profile, news and other data.
- What is effective rate of interest? definition and meaning
Definition of effective rate of interest: Actual interest paid on a loan, or earned on a deposit account, depending on the frequency of compounding or effect of ...