INTEREST COVERAGE Definition

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INTEREST COVERAGE is a ratio which indicates the ability of a company to cover net interest expenses with income before net interest and taxes. It is calculated by dividing income before interest and taxes by interest.

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PRINCIPAL is: a. a person who has controlling authority (e.g. the CEO or owner of a company) or is in a leading position (part owners of a legal entity) or, b. a matter or thing of primary importance, e.g. is the amount of a loan, excluding interest, or the amount you invest, excluding income.

ON-THE-RUN ISSUE is the most recently issued U.S. Treasury or government agency securities. Older issues sometimes are described as "off-the-run!'

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