Examples of Notional Interest in a sentence
Notional interest rate shocks are applied on the resultant Modified Duration Gap to arrive at the changes in the Market Value of Equity (MVE).
Notional interest calculated using the relevant group’s actual weighted cost of capital and depreciation combined will give an approximately constant charge to revenue.
Notional interest calculated using the relevant company’s actual weighted cost of capital and depreciation combined will give an approximately constant charge to revenue.
Notional interest income on short positions is allocated wholly to the revenue account.
Notional interest expense on long positions is apportioned between revenue and capital in accordance with the Board’s long term expected returns of the Company (currently determined to be 25% to the revenue account and 75% to capital reserves).