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The monthly interest rate for fixed rate bonds is the annual interest rate divided by 12.

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AnswerBot

4mo ago

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Related Questions

Do bonds pay a variable interest rate monthly?

No, bonds pay a fixed amount of interest on a regular schedule.


What are fixed rate bonds?

Fixed rate bonds are a 'security' paying a fixed periodical 'coupon' or interest payment, say 6%. After some defined period, the bond will repay its 'face value' being equivalent of the principal in a loan.


What are fixed home loans?

You are probably referring to fixed rate home loans. This means the interest rate is preset at a fixed interest rate and your monthly payments will not change over the course of the loan.


What is a loan that is paid in equal monthly installments with a fixed interest rate?

installment credit


How can I calculate the monthly interest rate from an annual interest rate?

To calculate the monthly interest rate from an annual interest rate, divide the annual rate by 12. This will give you the monthly interest rate.


How to convert a monthly interest rate to an annual interest rate?

To convert a monthly interest rate to an annual interest rate, you can multiply the monthly rate by 12. This will give you the annual interest rate.


How is interest calculated on Series I bonds?

Interest on Series I bonds is calculated by combining a fixed rate and an inflation rate. The fixed rate remains the same throughout the bond's term, while the inflation rate adjusts every six months based on the Consumer Price Index.


How is the interest on I bonds calculated?

The interest on I bonds is calculated using a combination of a fixed rate and an inflation rate. The fixed rate remains the same throughout the life of the bond, while the inflation rate is adjusted every six months based on changes in the Consumer Price Index.


Do fixed bonds have higher rates than bonds with fluctuating interest?

Fixed bonds don't necessarily have higher rates than bonds with fluctuating interest. An interesting feature of bonds is that their rates tend to go down as interest rates in general go up. A fixed rate bond will yield the same return no matter what the economy does, but a fluctuating interest bond's rate could go up if the general interest rate goes down or vice versa. So really, the important determining factor of which type of bond performs better is the economy in general.


How to convert a yearly interest rate to a monthly interest rate?

To convert a yearly interest rate to a monthly interest rate, divide the yearly rate by 12. This will give you the equivalent monthly interest rate.


What is a loan that is paid in equal monthly installments with a fixed interest rate called?

installment credit


How can I convert an annual interest rate to a monthly interest rate?

To convert an annual interest rate to a monthly interest rate, divide the annual rate by 12. This will give you the equivalent monthly rate.