Examlex
The symbols used in a language are arbitrary. What does this mean?
Nominal Rate
The stated interest rate of a financial instrument, not accounting for inflation or compounding effects.
Effective Rate
The actual interest rate on a loan or investment, taking into account the effects of compounding and other factors.
Face Rate
The interest rate stated on the face of a bond or a loan document, which determines the interest payments that the issuer will make.
Contract Rate
This refers to the interest rate stated in a contract that determines the amount of interest owed on a loan or financial agreement.
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