Longterm Interest
Longterm Interest Rate
The Longterm Interest Rate is used if the fixed Interest Period at Debt tranches or Shareholder Loans expires.
Input Field | Description | Unit | Presetting | ||||
|---|---|---|---|---|---|---|---|
Longterm Interest Rate | The Longterm Interest Rate is used if the fixed Interest Period at Debt tranches or Shareholder Loans expires. The Interest is composed by the Base Rate and the Margin:
Fixed Interest Period = 0 A fixed interest period of Debt Tranches or Shareholder Loans of 0 years and a longterm interest rate of 0% can lead to an unintended errors! The interest according to the Debt Tranche or Shareholder Loan is in this case 0% despite a different interest input of for example 4% because in this case, the longterm interest rate of 0% is adopted after the fixed interest period of 0 years. | Percent nominal per year or bps | 5% |
Calculation
The Longterm Interest Rate affects Debt calculations and Shareholder Loan calculations.