Percentage interest that is shown on the bond or the loan document. The Effective Rate is a more meaningful Yield figure.
Face Interest Rate
| Business Dictionary: Face Interest Rate |
| 5min Related Video: Face Interest Rate |
| Real Estate Dictionary: Face Interest Rate |
The percentage interest that is shown on the loan document. Compare withAnnual Percentage Rate, Effective Rate.
Example: A mortgage has a 6% face interest rate, $100,000Face Value and 30-year Amortization term. If market interest rates are 8%, the Market Value of the loan is $81,708.
Learn More
 | Contract Rate |
| Nominal Loan Rate |
| Discount Points (business term) |
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 | Business Dictionary. Dictionary of Business Terms. Copyright © 2000 by Barron's Educational Series, Inc. All rights reserved. Read more |
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| Real Estate Dictionary. Dictionary of Real Estate Terms. Copyright © 2004 by Barron's Educational Series, Inc. All rights reserved. Read more |
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Mentioned in
- Contract Rate
- Nominal Loan Rate
- Discount Points (business term)
- Face Value
- Effective (Interest) Rate (business term)
- Usury
- Indexed Loan
- Assumption of Mortgage (business term)
- Coupon (bond)
- Floating exchange rate
- Interest rate risk
