Examples of Interest Component in a sentence
In this case, the Interest Component would be negative and would have a value-reducing effect on the NPV on such a day.
This leverage effect has a (possibly disproportionate) effect on the NPV in the event of both positive and negative movements of the Underlying.The Interest Component results from an investment in a money market instrument at an overnight rate less a Calculation Fee and less a per annum rate (IC rate), which includes the hypothetical costs that would be incurred in tracking the performance of the NPV.
Pursuant to the Trust Agreement, the Corporation and the Board have made certain covenants designed to assure that the Interest Component of the Basic Rent Payments is and shall remain excludable from gross income for purposes of federal income taxation.
The Board must comply with all other requirements as shall be determined by Special Counsel to be necessary or appropriate to assure that the Interest Component of the Basic Rent Payments will be excludable from gross income for purposes of federal income taxation.
In particular, in respect of the Interest Component, a negative interest can lead to interest losses instead of expected interest gains and the NPV and thus the value of the Securities is also reduced.