VARIABLE RATE LEASES.

Abstract

Major financial lease contracts are commonly written on a variable interest rate basis. The conditions of this sort of lease include an interest rate variation clause which provides for adjustments to be made to the rentals when interest rates change. Such adjustments are usually made periodically by applying the change in the interest rate (from the rate at the beginning of the lease) to the amount of the lessor's investment in the lease.

Citation

Hodges, S.D. (1989), "VARIABLE RATE LEASES.", Managerial Finance, Vol. 15 No. 1/2, pp. 39-43. https://doi.org/10.1108/eb013610