What is the meaning of True interest cost?

Subtopics: TIC 

For a security such as commercial paper that is sold on a discount basis,' True interest cost' is the coupon rate required to provide an identical return assuming a coupon-bearing instrument of like maturity that pays interest in arrears.

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APABarry Goldsmith. (2010). true interest cost. Retrieved September 27, 2026, from http://smartdefine.org/true_interest_cost/definitions/1165635
ChicagoBarry Goldsmith. 2010. "true interest cost" http://smartdefine.org/true_interest_cost/definitions/1165635 (accessed September 27, 2026).
HarvardBarry Goldsmith 2010, true interest cost, Smart Define, viewed 27 September, 2026, <http://smartdefine.org/true_interest_cost/definitions/1165635>.
MLABarry Goldsmith. "true interest cost" 21 October 2010. Web. 27 September 2026. <http://smartdefine.org/true_interest_cost/definitions/1165635>