Finance

Compound interest (or compound interest) applies to interest payments made on the amount of the initial principal and the interest accrued in advance. It is…

Often known as “times interest earned”, the Interest Coverage Ratio (ICR) is a financial measure used to assess how quickly a business will pay interest…

Short-term debt (STD), also referred to as current debt, is debt that must be repaid within one year. The part of the overall liabilities section…

Long Term Debt (LTD) is any amount of unpaid debt owed by a corporation that has a maturity of 12 months or more (1 Year).…

The debt-to-equity ratio (D/E) also referred to as the “debt-equity ratio” or “risk ratio”, is a leverage ratio that measures the weight of total debt…

Promissory Note A promissory note is a financial instrument that contains a written promise by one party to pay another party a definite sum of…

The equity capital market (ECM) is a part of the larger stock market, where financial institutions and businesses engage with the financial instruments of exchange…

Money market is a wholesale market with an exchange of several financial instruments. It refers to dealing in debt assets of the very short term.…

The nominal interest rate (NIR) or nominal rate of interest refers to the rate of interest before considering inflation. An interest rate is considered nominal…

The Effective Interest Rate (EIR), also known as Effective Annual Interest Rate (EAR), Annual Equivalent Rate (AER), or Simply Effective Rate, is the Actual Return…

A periodic interest rate is a rate that can be paid on a loan or realized over a specified period of time on investment. It…

The term “annual percentage rate (APR)” refers to the annual interest rate that a person has to pay on a loan, or earn on a…