What is the meaning of True Interest Cost (TIC)?

True Interest Cost (TIC) is the TIC is a method of calculating an issuer's borrowing interest cost, which considers the present value of the debt service payments. It is defined as the rate necessary to discount the debt service payments, compounding semi-annually, to the purchase price received by the issuer at the time of bond closing.

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APABarry Goldsmith. (2010). true interest cost (tic). Retrieved September 27, 2026, from http://smartdefine.org/true_interest_cost_(tic)/definitions/1165636
ChicagoBarry Goldsmith. 2010. "true interest cost (tic)" http://smartdefine.org/true_interest_cost_(tic)/definitions/1165636 (accessed September 27, 2026).
HarvardBarry Goldsmith 2010, true interest cost (tic), Smart Define, viewed 27 September, 2026, <http://smartdefine.org/true_interest_cost_(tic)/definitions/1165636>.
MLABarry Goldsmith. "true interest cost (tic)" 21 October 2010. Web. 27 September 2026. <http://smartdefine.org/true_interest_cost_(tic)/definitions/1165636>