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Well, it is currently completely dysfunctional; if one is an insider, the interest rate is zero, or even negative. For an outsider, the sky is the limit.

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Difference enters bond's coupon interest rate the current yield y bond-holder's required rate of return?

Difference enters bond's coupon interest rate the current yield y bondholder's required rate of return?


What occurs when a bonds stated interest rate is less than the market interest rate?

Since the current market interest rate is higher, it is more attractive to a new investor then the bond with a lower interest rate. Thus, the price of the lower interest rate bond has to decline to be competitive with new bonds in the market.


What is the current euro to US dollar rate?

At the current moment, the euro to US dollar conversion rate is 1.29 US dollars to 1 Euro. While it was worse in previous years, it has slowly been stabilizing to its current rate.


What mechanism is used to adjust the stated interest rate to the market rate of interest?

The mechanism used to adjust the stated interest rate to the market rate of interest typically involves the use of a benchmark rate, such as the LIBOR or the federal funds rate, which reflects current market conditions. Lenders may employ an interest rate spread, where the stated rate is set above or below the benchmark to account for factors like credit risk and inflation expectations. Additionally, financial instruments like adjustable-rate mortgages (ARMs) adjust periodically based on changes in the benchmark rate, aligning the stated interest rate with prevailing market rates.


What are the factors that determine the Canadian currency exchange rate with the US?

There are major factors that determine the Canadian to US currency exchange rate. These include differences in inflation, differences in interest rates, current-account deficits, public debt, terms of trade, and political stability and economic performance.

Related Questions

What is the current interest rate on T-bills?

The current interest rate on T-bills is around 0.1 to 0.2.


What is the current interest rate on treasury bills?

The current interest rate on treasury bills is around 0.1 to 0.2.


What is the provident fund interest rate?

The current PF interest rate if 8% Starting April 2012, the rate of interest will be 8.25%


What is the current interest rate for auto finance?

Auto finance interest rates vary, but the current interest rate is generally between six and nine percent.


What is the current 3 month CD interest rate?

The current 3-month CD interest rate is around 0.15 to 0.25.


What is the current interest rate for 6 month CDs?

The current interest rate for 6-month CDs is around 0.15 to 0.25.


What is the current interest rate for a three month CD?

The current interest rate for a three-month CD is around 0.15 to 0.25.


What rates do US Saving Bonds offer?

The current interest rates of US Saving Bonds are 0.2 percent for Series EE Bonds. Series I Bonds have interest rate of 1.18 percent. Series HH Bonds have interest rate of 1.5 percent.


What does a variable interest rate on my current bank account imply?

A variable interest rate on a current bank account would imply that the interest rate fluctuates over time. Market conditions will determine the value of the interest earned.


What is the current 12 month CD interest rate?

The current 12-month CD interest rate is around 0.5 to 1.0 on average.


What is the current hysa interest rate for savings accounts?

The current HYSA interest rate for savings accounts is around 0.5 to 1.0 annually.


What is the current interest rate for a 12 month CD?

The current interest rate for a 12-month CD is around 0.5 to 1.0 on average.