4 ms·
It's not interest, it's... hey, look, something behind you!
by cool_dude85 5y ago
It's not interest, it's... hey, look, something behind you!
- KMag 5y agoSee https://en.wikipedia.org/wiki/Contractum_trinius https://en.wikipedia.org/wiki/Contractum_trinius . There are lots of ways to slice and dice cash flows and quibble over what's interest and what isn't. (See also repurchase agreements, Islamic finance, general structured finance, etc. etc.) It's generally more useful to compare cash flows in terms of yield-to-maturity, instead of strictly by interest rate.