Definitions for **"Nominal interest rate"**

The interest rate actually observed in the market, in contrast to the real interest rate.

The rate of simple interest on a debt or a bond that ignores any impact from inflation.

See contractual interest rate. To Top

Interest rate earned or paid, not adjusted for inflation.

The contracted, or quoted, or stated, interest rate.

Also referred to as nominal yield, this is the annual amount received as interest from a fixed income security relative to the par value of the issue. A life /health insurance underwriting class that is used for applicants that have not used tobacco products during the past 2 years (time may vary by insurance company). Most companies charge a reduced premium rate for non-smokers.

The contractual interest rate shown on the face and in the body of a bond and used to compute the amount of interest to be paid, in contrast to the effective interest rate.

An interest rate that is not adjusted to remove the effects of actual or expected inflation. Market interest rates are generally nominal interest rates.

the quoted (annual) rate per annum. If interest is compounded more often than once a year, the effective rate is greater than the nominal rate (e.g. 12% p.a. compounded monthly is equivalent to 12,68% p.a.; the nominal interest rate (i) is 0,12 and the effective interest rate is 0,1268).

The interest rate that appears on the real estate promissory note, not the effective rate. Also called the note rate.

The interest rate usually below market stated on the note.

Distinct from annual effective interest rate, a rate of interest or discount rate that is equal to a periodic interest rate that is equal to a periodic interest rate multiplied by the frequency of that periodic rate per annum without compounding. For example, a monthly discount rate of 1% is an annual nominal interest rate of 12% (1% x 12).

The rate of interest stated in a note or contract. This may not be the true or effective rate (actual cost) to the borrower.

an interest rate stated as a yearly rate, but compounded more frequently than yearly. e.g. Credit card rate of 18% which is compounded monthly so = 100 x ý1+(1+18/12) 12

A stated or contract rate; an interest rate, usually annual, that does not necessarily correspond to the true or effective rate of growth at compound interest.

The stated, or contractual, interest rate in a loan agreement, bond or other security, which may differ from the effective interest rate.... read full article

The stated rate on a loan.

is the stated, or named, interest rate in a note or contract; the nominal interest rate may differ from the true or effective interest rate. See EFFECTIVE INTEREST RATE.

the stated rate of interest in a loan agreement.

An interest rate which does not necessarily correspond to the effective interest rate. In Canada, these two rates do not correspond.

The stated interest rate in a note or contract, which may differ from the true or effective interest rate, especially if the lender discounts the loan and advances less than the full amount. ( See effective interest rate )

An interest rate that is quoted contractually by a lender or a borrower and does not take into account the effects of compounding. The nominal interest rate will always be less than the effective interest rate. Also known as stated interest rate. Contrast with effective interest rate.

Rate of interest stated in a loan agreement.

The cost inflicted by inflation eroding the value of stored dollars plus the forgone real interest rate; the opportunity cost of holding money.

The interest rate unadjusted for inflation.

The quoted interest rate for a mortgage loan.

Equals stated interest rate not taking into account compounding or inflation.

The stated interest rate, which does not take inflation into consideration.

An interest rate without adjustment for compounding or other factors that provides the “true effective” interest rate.

The noninflation-adjusted interest rate.

Nominal, meaning named; it is the interest rate stated (named) in the loan document.

Option