True Interest Cost definition

True Interest Cost or “TIC” means with respect to Lock-In Date Tested Bonds, the rate of interest, compounded semiannually, that would be required to discount

True Interest Cost. (TIC) means the annual discount rate that, when used to discount all debt service payments on the issue to the date of initial delivery of the issue, using a compounding interval equal to the interest payment periods for the issue, results in the aggregate present value of such debt service payments being equal to the original purchase price (including accrued interest) of the issue.

True Interest Cost means the rate necessary to discount the cumulative amounts payable on the respective Payment Dates in respect of Senior Debt Service to the original purchase price of the Senior Obligations (taking into account discounts, premiums and transaction costs) on the basis of semi-annual compounding of interest.

Examples of True Interest Cost in a sentence

• True Interest Cost" as the term is commonly applied in municipal finance.

• As set forth in Buyer’s Pricing Model, the Base Purchase Price is established assuming Buyer’s issuance of twenty (20) year municipal bonds (the “Acquisition Bonds”) yielding Net Proceeds of One Hundred Fourteen Million, Four Hundred Twenty-One Thousand, Twenty Two Dollars ($114,421,022) (“Base Bond Amount”) and having a True Interest Cost of Four and Fifty-Nine Hundredths percent (4.59%) (the “Base TIC”).

• The SRF loan interest rate is calculated by taking half of the True Interest Cost (TIC) of the most recent State of California General Obligation Bonds sale.

• The origination and administrative fee add 0.50% to the cost of the loan for a True Interest Cost of borrowing of only 2.9%.

• True Interest Cost (TIC)..................................................................................................................................................

More Definitions of True Interest Cost

True Interest Cost means the rate, expressed as a percentage, that discounts all of the Issue’s future Principal and interest payments to amounts, when summed, equal the Principal plus the Net Issue Premium or Discount.

True Interest Cost means the bond yield according to issue price without a reduction for related administrative costs, and is the same figure as the arbitrage yield calculation described in the United States Tax Reform Act of 1986.

True Interest Cost means the rate used to discount the amounts payable on the respective principal and interest maturity dates which yields a result equal to the purchase price received for bonds; and

True Interest Cost or “TIC” means with respect to Tested Bonds, the rate of interest, compounded semiannually, that would be required to discount (i) the payments of principal and interest to holders of Tested Bonds to maturity to (ii) the purchase price paid by buy-and-hold investors in the Tested Bonds. Thus, TIC on Tested Bonds is determined without regard to costs of issuing the Tested Bonds, funded interest, any amounts deposited to a debt service reserve account, or amounts paid for bond insurance or other credit enhancement with respect to the Tested Bonds.

True Interest Cost means the index as of September 30th of the previous Fiscal Year provided by the Bond Buyer’s 25 Bond Revenue Index.

True Interest Cost means that yield which if used to compute the present worth as of the date of the bonds of all payments of principal and interest to be made on the bonds from their date to their respective maturity dates (as specified in the maturity schedule and without regard to the possible optional prior redemption of the bonds), using the interest rate specified in the bid or purchase contract produces an amount equal to the principal amount of the bonds, plus any premium bid or stated in the purchase contract. No adjustment shall be made in such calculation for accrued interest on the bonds from their date to the date of delivery thereof. Such calculation shall be based on a 360-day year consisting of twelve 30-day months and a semi-annual compounding interval.

True Interest Cost means the interest rate that, when compounded at time intervals consistent with the