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Definition of 'True Interest Cost - TIC'
The real cost of taking out a loan. True interest cost includes all ancillary fees and costs, such as finance charges, possible late fees, discount points and prepaid interest, along with factors related to the time value of money.
It can also refer to the actual cost of issuing a bond.
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Investopedia explains 'True Interest Cost - TIC'
The federal Truth in Lending Act requires lenders to disclose the true cost of credit to their borrowers and prospective borrowers in the consumer-loan agreement. This cost must be computed by a standard formula that incorporates interest, fees and other costs. This prevents lenders from making misleading statements about the real cost of borrowing from them.
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Search results for 'True Interest Cost (TIC)'
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http://www.investopedia.com/articles/professionaleducation/07/Series_7_municipal.asp
... Many issuers also require that the bidders also provide the true interest cost
(TIC). This calculation takes the time value of money into account. ...
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http://www.investopedia.com/exam-guide/series-7/customer-accounts/opening-brokerage-account.asp
... when married individuals own an equal undivided interest in all ... an alias, instead
of the account owner's true name. ... factors such as trading frequency, cost, etc ...
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