Interest Rates

Interest Rate Series

An interest rate is the amount in addition to the loan principal (expressed as a percentage) that is charged by a lender to a borrower for the use of assets. Interest rates also apply to the amounts a depositor earns at banks or credit institutions from money stored in their deposit accounts.

In MineMarket, interest rate series are referenced when entering general details for material contracts, specifying contract pricing and used when generating invoices.

Multi-Maturity Interest Rate Series

A multi-maturity interest rate has rates for predefined maturity periods. Rates for other maturity periods are interpolated if required. For example, if a rate is required for a maturity of 45 days, the rate is interpolated from the rates entered for maturities of 1 month and 2 months.

Such interpolated rates are needed for calculating the net present value of hedge positions and options pricing. The configuration of market commodities includes selecting an interest rate. If a multi-maturity interest rate is selected, the whole series is selected, rather than rates for an individual maturity period.

Only a single maturity period can be selected as the interest rate in payment conditions. No interpolation is done for rates from a single maturity period.