Could somebody who knows a lot about the stocks and bonds etc. answer these question
1. what is a variable-rate bond and a treasury bond future contract
2 what is example of a money market instrument use in the market place.
oh one more thing
If I buy a bond with the face value of 1000.00 and the coupon rate is of 6%. and I sold it one year later for 930.00 what would be my yield rate at maturity.
thanks for all your help
"A fixed rate bond is a bond that has a fixed rate, whereas a floating rate bond can change due to different variables. BNET is a great business resource that will help with learning about fixed and floating rate bonds."
The lender can change the rate on a variable rate loan. A fixed rate stays the same for the life of the loan.
The difference between fixed and variable mortgages are that in a fixed mortgage, the rate can not change. In a variable mortgage, the rate changes with time.
Coupon rate
The current best fixed rate bond will depend on one's location and their personal preference. In the UK one can get a 9 month fixed rate bond at just 0.75% and that is the lowest rate.
No, an instrument is something like a bond or cd.
It is also called variable rate or adjustable rate. It does not have a fixed interest rate over the life of any of these debt instrument: loan, bond, mortgage, or credit.
The Variable Rate is the rate at which a number changes
Market rate of bond is that rate at which that bond will be sale in market and it is different from face value of bond as well as book value of bond.
"A fixed rate bond is a bond that has a fixed rate, whereas a floating rate bond can change due to different variables. BNET is a great business resource that will help with learning about fixed and floating rate bonds."
When market interest rates exceed a bond's coupon rate, the bond will:
Variable rate mortgages are mortgages that are not fixed. A person would have to decide which mortgage they would like to try for, either a fixed mortgage rate or a variable rate mortgage.
If you want a variable interest rate to fixed, refinancing your home would be the way you can accomplish this. Variable rate also known as an adjustable rate mortgage should be refinanced before your interest rate adjust.
Bond premiums refer to bonds that are issued at a price above its face value. for example, if the market rate for a bond is 8% and the stated rate on the bond is 9% then it would be a premium bond. Bond discounts refer to bonds that are issued at a price below its face value. For example, if the market rate for a bond is 9% and the stated rate on the bond is 10%, then it would be a discount bond.
Rate of change of the "vertical" variable in relation to the "horizontal" variable.
The rate of change indicates the change in one variable per unit change in a second variable at (or around) that level for the second variable.
The lender can change the rate on a variable rate loan. A fixed rate stays the same for the life of the loan.