True Interest Cost definition

True Interest Cost or “TIC” means with respect to Lock-In Date Tested Bonds, the rate of interest, compounded semiannually, that would be required to discount

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True Interest Cost. (TIC) means the annual discount rate that, when used to discount all debt service payments on the issue to the date of initial delivery of the issue, using a compounding interval equal to the interest payment periods for the issue, results in the aggregate present value of such debt service payments being equal to the original purchase price (including accrued interest) of the issue.

True Interest Cost means the bond yield according to issue price without a reduction for related administrative costs, and is the same figure as the arbitrage yield calculation described in the United States Tax Reform Act of 1986.

Examples of True Interest Cost in a sentence

• Rate of Return means Portland’s cost of debt, defined as its True Interest Cost on all outstanding Portland Water Bureau debt as reasonably determined by Portland’s Municipal Advisor, multiplied by an equity premium of 1.35.

• Conduct the bid opening and verify the lowest bidder (i.e., lowest True Interest Cost) in the case of competitive sale.

• Upon the request of Seller, Buyer shall also provide up to two additional estimates of the All-in True Interest Cost from its underwriter; however, 50% of any costs incurred by Buyer from its underwriter for such additional requests, if any, shall be borne by Seller.

• Buyer shall also provide, in a timely manner, other such estimates of the All-in True Interest Cost as Buyer may receive from its underwriter from time to time.

• Portland’s cost of debt, defined as its True Interest Cost on all outstanding debt as determined by Portland’s Municipal Advisor, times a multiplier of 1.35, plus X percentage point [To be added for agreement with terms less than 30 years].

More Definitions of True Interest Cost

True Interest Cost means the rate necessary to discount the cumulative amounts payable on the respective Payment Dates in respect of Senior Debt Service to the original purchase price of the Senior Obligations (taking into account discounts, premiums and transaction costs) on the basis of semi-annual compounding of interest.

True Interest Cost means the rate, expressed as a percentage, that discounts all of the Issue’s future Principal and interest payments to amounts, when summed, equal the Principal plus the Net Issue Premium or Discount.

True Interest Cost means the rate used to discount the amounts payable on the respective principal and interest maturity dates which yields a result equal to the purchase price received for bonds; and

True Interest Cost means the index as of September 30th of the previous Fiscal Year provided by the Bond Buyer’s 25 Bond Revenue Index.

True Interest Cost or “TIC” means with respect to Tested Bonds, the rate of interest, compounded semiannually, that would be required to discount (i) the payments of principal and interest to holders of Tested Bonds to maturity to (ii) the purchase price paid by buy-and-hold investors in the Tested Bonds. Thus, TIC on Tested Bonds is determined without regard to costs of issuing the Tested Bonds, funded interest, any amounts deposited to a debt service reserve account, or amounts paid for bond insurance or other credit enhancement with respect to the Tested Bonds.

True Interest Cost means that yield, which if used to compute the present worth as of the delivery date of the refunding bonds of all payments of principal and interest to be made on the refunding bonds from their delivery date to their respective maturity dates (as specified in the maturity schedule and without regard to the possible optional prior redemption of the refunding bonds), using the interest rate specified in the bid or purchase contract produces an amount equal to the principal amount of the refunding bonds, plus any premium or minus any discount bid or stated in the purchase contract. Such calculation shall be based on a 360 day year consisting of 12, 30-day months and a semi-annual compounding interval.

True Interest Cost means the rate necessary to discount the amounts payable on the respective principal and interest payment dates to the purchase price received for the City’s debt obligations issued to fund the City Financing Contribution.