Floating Interest Rate Calculator

✖Reference Rate is an interest rate benchmark used to set other interest rates.ⓘ Reference Rate [R_ref]			+10% -10%
✖Fixed Spread is the difference between Ask and Bid prices, set by the broker and remains the same even though the prices are changing because of general market fluctuations and volatility.ⓘ Fixed Spread [FS]			+10% -10%

✖Floating Interest Rate is an interest rate that changes periodically. The rate of interest moves up and down, or "floats," reflecting economic or financial market conditions.ⓘ Floating Interest Rate [FIR]

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Formula

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Floating Interest Rate

Formula

`"FIR" = "R"_{"ref"}+"FS"`

Example

`"25"="10"+"15"`

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Floating Interest Rate Solution

STEP 0: Pre-Calculation Summary

Formula Used

Floating Interest Rate = Reference Rate+Fixed Spread
FIR = R_ref+FS
This formula uses 3 Variables

Variables Used

Floating Interest Rate - Floating Interest Rate is an interest rate that changes periodically. The rate of interest moves up and down, or "floats," reflecting economic or financial market conditions.
Reference Rate - Reference Rate is an interest rate benchmark used to set other interest rates.
Fixed Spread - Fixed Spread is the difference between Ask and Bid prices, set by the broker and remains the same even though the prices are changing because of general market fluctuations and volatility.

STEP 1: Convert Input(s) to Base Unit

Reference Rate: 10 --> No Conversion Required
Fixed Spread: 15 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

FIR = R_ref+FS --> 10+15

Evaluating ... ...

FIR = 25

STEP 3: Convert Result to Output's Unit

25 --> No Conversion Required

FINAL ANSWER

25 <-- Floating Interest Rate

(Calculation completed in 00.004 seconds)

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Credits

Created by Keerthika Bathula

Indian Institute of Technology, Indian School of mines, Dhanbad (IIT ISM Dhanbad), Dhanbad

Keerthika Bathula has created this Calculator and 50+ more calculators!

Verified by Vishnu K

BMS College of Engineering (BMSCE), Bangalore

Vishnu K has verified this Calculator and 200+ more calculators!

< 14 Fixed Income Securities Calculators

Accrued Interest

Go Accrued Interest = (Face Value*Total Annual Coupon Rate*Days since Last Payment Date)/(Number of Coupon Payments per Year*Accrual Period)

Conversion Premium

Go Conversion Premium = Conversion Value-Market Price of Convertible Bond

Conversion Ratio

Go Conversion Ratio = Par Value at Maturity/Conversion Price of Equity

Convexity Adjustment

Go Convexity Adjustment = Bond's Convexity*(Change of Yield^2)*100

Callable Bond Price

Go Callable Bond Price = Non Callable Bond Price-Call Option Price

Nominal Yield

Go Nominal Yield = (Total Annual Interest Payments/Face Value)*100

Expected Loss

Go Expected Loss = Default Probability*Loss Severity given Default

Putable Bond Price

Go Putable Bond Price = Non Putable Bond Price+Put Option Price

Conversion Value

Go Conversion Value = Market Price per Share*Conversion Ratio

Floating Interest Rate

Go Floating Interest Rate = Reference Rate+Fixed Spread

Dirty Price

Go Dirty Price = Clean Price+Accrued Interest

Clean Price

Go Clean Price = Dirty Price-Accrued Interest

Semi Annual Bond Equivalent Yield

Go Semi Annual Bond Equivalent Yield = Yield per Semi Annual Period*2

Loss Severity

Go Loss severity = 1-Recovery Rate

Floating Interest Rate Formula

Floating Interest Rate = Reference Rate+Fixed Spread
FIR = R_ref+FS

What is a Floating Interest Rate?

A floating interest rate changes periodically, as opposed to a fixed (or unchanging) interest rate. Floating rates are used by credit card companies and commonly seen with mortgages.Floating rates reflect the market, follow an index, or track another benchmark interest rate.Floating rates are also called variable rates.They're considered riskier than fixed rates.

How to Calculate Floating Interest Rate?

Floating Interest Rate calculator uses Floating Interest Rate = Reference Rate+Fixed Spread to calculate the Floating Interest Rate, The Floating Interest Rate formula is defined as the interest rate that changes periodically. Floating Interest Rate is denoted by FIR symbol.

How to calculate Floating Interest Rate using this online calculator? To use this online calculator for Floating Interest Rate, enter Reference Rate (R_ref) & Fixed Spread (FS) and hit the calculate button. Here is how the Floating Interest Rate calculation can be explained with given input values -> 25 = 10+15.

FAQ

What is Floating Interest Rate?

The Floating Interest Rate formula is defined as the interest rate that changes periodically and is represented as FIR = R_ref+FS or Floating Interest Rate = Reference Rate+Fixed Spread. Reference Rate is an interest rate benchmark used to set other interest rates & Fixed Spread is the difference between Ask and Bid prices, set by the broker and remains the same even though the prices are changing because of general market fluctuations and volatility.

How to calculate Floating Interest Rate?

The Floating Interest Rate formula is defined as the interest rate that changes periodically is calculated using Floating Interest Rate = Reference Rate+Fixed Spread. To calculate Floating Interest Rate, you need Reference Rate (R_ref) & Fixed Spread (FS). With our tool, you need to enter the respective value for Reference Rate & Fixed Spread and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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