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There is no 'normal' interest rate on sovereign debt. The initial rates are set at the sovereign debt auctions. Investors offer to buy a debt issue or a proportion of the issue at a certain interest rate. The offer is greatly influenced by the investors' own perception of the debt issuer (country) ability to repay its debt + demand for the issue + country sovereign debt rating.

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14y ago

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Why is it advisable to consolidate debt for a credit card?

It is wise to consolidate debt for credit cards when the debt is at a high interest rate, a person may take all the high interest rate debt and combine it into one debt with a lower interest rate to save money.


How does the interest rate on new debt influence the use of financial leverage?

The higher the interest rate on new debt, the less attractive financial leverage is to the firm


Is it wiser to repay smaller debt of same interest rate first?

Yes, it would be wiser to repay smaller debt of same interest rate first.


Is the relevant cost of debt the interest rate on already outside debt or that on new debt?

Yes according to mcdonalds


What is debt consolidation?

Debt consolidation - is reaching an agreement with each creditor to accept a lower regular payment, usually at a much reduced rate of interest. It takes longer to pay off the debt, but you pay less interest than you would at their normal rate. Companies would much rather come to a satisfactory agreement - than have to drag someone through the courts (which costs them money.


What is a good interest rate for debt consolidation loan?

Generally interest rate for debt consolidation remains low. But it also depends on different companies and their policies. They also lower your credit card interest payment up to 60%. By consolidating your debt you are paying one monthly payment, which is lower than all the payments you are paying to creditors. The debt consolidation agency uses this payment to pay off the actual debt and the interest on the debt.


What is Fixed interest or treasury notes?

Treasury Note is a debt interest and carry a fixed coupon rate of interest. It means the interest rate is fixed on the treasury note and it is given to the holder.


How does the interest rate for a bad credit debt consolidation loan differ from a regular small bank loan?

The interest rate for a bad credit debt consolidation loan differs from a regular small bank loan because the interest rate for the bad credit debt consolidation loan would be higher. The rate would be higher due to the fact that the one receiving the loan would pose a risk because they have bad credit and obviously had not been good with payments or something in the past. The regular small bank loan would be for those who have good credit, so the interest rate would be normal or lower.


When is normal interest rate lower then effective interest?

Only on Tuesdays.


How can I get myself out of debt?

Start paying off your debts as much as you can by settling debts starting from the highest interest rate to lowest interest rate. If your debts are overwhelming, I suggest you consult a debt counselor and/or work overtime/extra to become debt free faster.


How does debt consolidation save a homeowner money?

It depends on the interest rate. It can save a homeowner money by turning unsecured debt into secured debt.


What is floating interest?

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.