The contract interest rate, also known as the face interest rate or nominal interest rate, is the stated annual interest rate on a loan or bond, before any adjustments for compounding or inflation.
The contract rate, also known as the face interest rate, refers to the interest rate stated on a financial instrument, such as a bond or loan, which dictates the amount of interest the issuer will pay periodically to the holder.
The term FACE can refer to various financial and business concepts, including FACE INTEREST RATE and FACE VALUE.
A Face Interest Rate is the percentage interest rate specified on the bond or loan document. It differs from the Effective Rate, which is a more meaningful yield figure reflecting the actual cost of borrowing.
The nominal loan rate, also known as the face interest rate, is the interest rate stated on a loan agreement or financial instrument without adjusting for inflation or other factors that could affect the real cost of borrowing.
