Interest Rate

Definition:

In a Credit Agreement or an Indenture, the rate of interest a borrower or issuer pays a lender or bondholder on the outstanding principal of a loan or bond. Interest Rates can be fixed at the time the loan is created (i.e., a Fixed Rate) or can vary over the loan term, for example, those calculated as a specified margin plus LIBOR rates (i.e., a Floating Rate).

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