The phrase "alternative interest rate" is correct and usable in written English.
It can be used in financial contexts to refer to a different interest rate option compared to a standard or prevailing rate.
Example: "Investors should consider the alternative interest rate offered by the new financial institution to maximize their returns."
Alternatives: "substitute interest rate" or "different interest rate option".
Although LIBOR disclosure considerations may evolve in the future as more information on the transition to alternative interest rate benchmarks becomes available, to the extent that the move away from LIBOR is a trend known to management that is expected to have a material impact on a company, disclosure is needed in the upcoming Form 10-K.
It typically depends positively on a measure of economic activity Y and negatively on the opportunity cost of holding money i − i m, where i m is the interest on money and i is the alternative interest rate, typically government bonds.
First, in selecting between alternative combinations of interest rate and origination fee, John should select the highest-rate/lowest-fee combination.
The architect of Hecs, Bruce Chapman, has proposed an alternative whereby the higher interest rate applied only when graduates were earning above the threshold for repayments.
For people who plan to move in a few years and for those who expect their income to rise, an adjustable rate mortgage can be a sound alternative, because the initial interest rate is less than for a fixed-rate loan.
This type of borrowing can be a most attractive alternative to banks: the average interest rate for a 401(k) loan right now is about 4.25percentt (most plans add one percentage point to the prime rate, according to the Plan Sponsor Council of America's 2011 report, though the formula does vary across plans).
Wachtel says many fund managers don't see the bond market as an alternative because the Fed's interest rate tightenings are making bonds too risky.
The trouble with this analysis is not that it's wrong but that it raises the practical question: What's the alternative to low interest rates?
"There may be no alternative to raising interest rates, allowing greater flexibility in exchange rates and reducing reliance on foreign exchange intervention," the report said.
The politically less palatable alternative of increasing interest rates would in a corporation be analogous to increasing dividends.MICHAEL CORNELISSENVancouverThe art of warSIR Your review of "Saving Private Ryan" (August 8th) misses the point.
With households now even more deeply in debt, a fall in house prices would have even more serious consequences.As an alternative to raising interest rates to curb a housing bubble, governments could discourage excessive borrowing by limiting the size of a home loan as a proportion of the purchase price.
