1

**An interest rate, or rate of interest, is the amount of interest due per period, as a proportion of the amount lent, deposited or borrowed. **

Interest is payment from a borrower or deposit-taking financial institution to a lender or depositor of an amount above repayment of the principal sum.

How to Calculate Interest Rates on Loans : How to ... by ehowfinance

2

**The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited or borrowed.
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In finance, a bond is an instrument of indebtedness of the bond issuer to the holders.

Relationship between bond prices and interest rates ... by Khan Academy

3

**It is defined as the proportion of an amount loaned which a lender charges as interest to the borrower, normally expressed as an annual percentage. **

4

**It is the rate a bank or other lender charges to borrow its money, or the rate a bank pays its savers for keeping money in an account.
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A bank is a financial institution that accepts deposits from the public and creates credit.

5

**Annual interest rate is the rate over a period of one year. **

6

**Other interest rates apply over different periods, such as a month or a day, but they are usually annualised.**