INTEREST EXPENSE Definition

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INTEREST EXPENSE is the cost of borrowing funds in the current period. It is shown as a financial expense item within the income statement. An interest expense of zero to <15% relative to operating income, within the consumer products industry, is an indicator of a sustainable competitive advantage.

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PRUDENCE is having foresight and caution along with discretion, and to not act recklessly.

CPR is Constant Payment Rate, used to estimate the average life of mortgage-backed securities based on historical payments.

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