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The following definitions of terms and interest rates used in financial market, the end is an example using the LIBOR as a reference, for two different periods.

Interest Rate: The percentage value of the cost or payment of money, a certain amount of time.

Rate active: one calls for credits rate to customers.

Deposit rate: rate that gives the bank to capture customers.

Bid: interest rate to capture a bank lending rate.

Offer: interest rate that puts a bank deposit rate.

Spread Bid / Offer: The rate spread between the Bid and Offer rates, the larger the supply and demand, this differential is smaller. In emerging markets, the spread tends to be broader. You can apply the theory of efficient markets, to understand the logic of the spread.

Inter bank offer rate: Interest rate interbank lending, some banks have excess liquidity in short time, and can be given as loans to other banks, usually for lace need coverage.

Prime rate: prime lending rate of banks to extend credit to large customers.

Repurchase agreement rate (repo rate): The rate for repurchase agreements, which is a temporary sale of securities repurchase status on the date of expiration of the agreement at a higher price, using the title as collateral or guarantee.

Overnight repurchase agreement rate (overnight repo rate): The rate for repurchase agreements is made overnight, which is a temporary sale of securities repurchase status the next day at a price more, using the title as collateral.

Discount rate: Interest rate used by central banks for loans to commercial banks, which is found in financial data, also sometimes speaks of the discount rate to bring future cash flows of an investment or loan present value, and is particular to each investment or loan.

Federal funds rate: The interest rate on federal funds, which charge for very short-term loans for liquidity needs, short-term funds, usually provided to institutions which have their reservations Federal Reserve Banks.

Treasury bills rate: The interest rate on government bonds in the short term. There are T-Bills to 6, 12 and 18 months, when speaking of the bill Treasury auction, referred to the interest rate instrument is fixed on the day of the auction. At the rate linked to U.S. T-Bills, is regarded as risk-free rate.

Bankers Acceptance rate: Acceptance Bank is a bill of exchange accepted or endorsed by a bank, assuming the liability. The wearer can use it as collateral or sell them is then used interest rate to calculate the price at which the title is transferred.

Commercial Paper rate: interest rate securities issued by companies that are placed directly in the market for funding in the short term.

Certificates of Deposit rate: The interest rate on certificates of deposits issued by financial institutions, which establish that a certain amount of money has been deposited by a client for a period of time (30, 60, 90, 180, 360 days , usually), so the client can negotiate or transfer the title. In the case of the United States, certificates are issued for amounts greater than 100M dollars, according to the law in case of default, the certificates issued by more than 100m, are not priority for payment.

Libor: London interbank offer rate, interbank rate among large banks in London, calculated by the BBA, is used as a representative of several market rate, given the importance of London as a world financial center.

Hibor: Hong Kong interbank offer rate.

Eurodollars mid rate: Interest rate for deposits in U.S. dollars outside the United States.

IRR: Internal rate of return is the rate at which have been reinvested investment flows, brought to present value, thus, the rate of return. If it is brought to present value using the IRR, the result is zero.

Opportunity Cost Rate: The return on investment that is going to sacrifice to invest in another, of equal risk, is used to determine whether an investment is adding value or not.

Ke: Cost of equity, or opportunity cost of shareholders as a percentage.

Kd: cost of debt, expressed as a percentage.

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