Interest Rate
The rate expressed as a percentage of the principal amount of a bond used to determine the amount of interest to be paid by the issuer or the borrower.
bond-basics
Fixed Interest Rate
An Interest Rate which is set at the time a Bond is issued and which does not vary during the term of the Bond.
See Also
In Contrast With
Variable Interest Rate
The interest rate on a bond which varies according to a formula set forth in the bond or the indenture or bond resolution/ordinance or based on the interest rate required by a remarketing agent to remarket the bonds at par.
Start with the Bond Basics
Hundreds of Terms and Concepts
Underwriter’s Discount
The difference between the amount an underwriter pays the issuer for the bonds at the closing (i.e., the purchase price) and the price at which the underwriter sells the bonds to the public (i.e., the issue price).