TEASER RATE Definition

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TEASER RATE, in lending, is the initial rate set on adjustable-rate mortgages (ARMs) by the lender to attract prospective borrowers. It is the coupon rate an investor earns in the first year.

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CONVERTIBLE is a corporate security (usually bonds, notes or preferred stock) that can be exchanged for another form of security (usually common stock).

INDIFFERENCE POINT is that point on the indifference curve where the compared values intersect. See INDIFFERENCE CURVE.

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