The high and low prices, or high and low bids and offers recorded during a
specified time.
Range forward
A forward exchange rate contract that places upper and lower bounds on the
cost of foreign exchange.
RAP
See: Regulatory accounting procedures
Rate anticipation swaps
An exchange of bonds in a portfolio for new bonds that will achieve the target
portfolio duration, based on the investors assumptions about future changes in
interest rates.
Rate lock
An agreement between the mortgage banker and the loan applicant
guaranteeing a specified interest rate for a designated period, usually 60 days.
Rate of interest
The rate, as a proportion of the principal, at which interest is computed.
Rate of return
Calculated as the (value now minus value when you purchased) divided by the
value when you purchased. For equities, we often include dividends with the
value now. See also: return, annual rate of return
Rate of return ratios
Ratios that are designed to measure the profitability of the firm in relation to
various measures of the funds invested in the firm.
Rate risk
In banking, the risk that profits may decline or losses occur because a rise in
interest rates forces up the cost of funding fixed-rate loans or other fixed-rate
assets.
Ratings
