# Questions tagged [interest-rate]

The proportion of an amount loaned which a lender charges as interest to the borrower, normally expressed as an annual percentage. The interest rate is typically determined by a combination of market forces and monetary policy.

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### Why this is not possible to start a new banking system without interest (riba) where the country's central bank is interest base? [closed]

Some of the scholar or researcher said that it is not fully possible to start new banking system without interest (riba) under the country's central bank where the central bank is under interest . ...
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### impact of interest rate and benefits for IMF

We know that when interest rates are high, the economy slows and inflation decreases. when interest rates are low, the economy grows, and inflation increases. Now govt wants low inflation as it has to ...
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### I am given an annual interest on my money. How do I calculate how much interest I earn daily?

If an institution is giving me an interest of 7% pa and the interest will be earned daily. How do I calculate how much do I earn per day? I tried it calculate like this: ...
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### What is the relationship between interest rates and stock values

I have started reading the book After the music stopped and came across a section which I couldnt quite understand. This is the following passage the fundamental determinants of stock values are ...
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### Negative Interest Rates and Pension Funds [closed]

How do negative interest rates impact the future prospect and business model of (defined benefit) pension funds? What could be winning investment strategies for pension funds in a negative interest ...
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### Is it easier to borrow money during a recession or high inflation period?

During a recession the FED applies expansionary monetary policies while during high inflation periods it contracts the money supply which respectively lowers and raises interests rates. Given that ...
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### Why it is important to observe if the 10Y treasury yield moves nowadays?

in the context of low yields, where fed continues with fiscal stimulus, I've heard from many economists that this week the 10Y treasury rate has been finally increasing. In which situation is this ...
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### Uses of simple interest

Recently I started to read again Brealey & Myers's "Principles of Corporate Finance" (an older edition I hold it since I attended to the university course on Economics and Corporate ...
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### Dynamics of interest rates, exchange rates and bond prices within the UIP

There are already a few questions about the workings of the UIP and the exchange rate. What I have basically taken from those discussions is that one always has to distinguish between the spot rate ...
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### Why did Mexico have such a high deposit rate in the 70's despite fixed exchange rate?

Why did Mexico have a high deposit rate in the 70's? Why would a bank want to pay the public such a high interest rate?
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### Negative Interest Rates - incentive to lend? [duplicate]

I was reading up on negative interest rates on Investopedia, where they clamed this: The negative interest rate is meant to be an incentive for banks to make loans during a period in which they would ...
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### overnight index swaps OIS

I'm writing a paper where I am using expected federal funds rates at different horizons and wanted to use the OIS as a proxy for what the market expects the FFR to be post FOMC-meetings. However, I ...
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### A question regarding eurodollar futures rate

I am reading a paper, and cannot understand this part. In the second line, it is said that the pay off on this futures contract equals one minus the current annualized 3 month LIBOR rate in the ...
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### Calculate dividend yield using cumulative dividend and price

I just learned basic theory of option pricing and I'm doing some exercise. There is a problem about dividend yield. Suppose we are given cross-sectional data like this: where $S$ is the price of ...
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### What is the state of the art in capital theory?

In the first half of the 20th century a great deal was written about capital theory, including writers such as Hayek, Böhm-Bawerk, Sraffa, Knight, Robinson and Fisher. Many of these figures debated ...
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### What is the relation between the USD Swaps Rates and US treasuries?

I understand a swap rate is the fixed leg on a IRS (source), and a swap spread is the difference between a swap rate and the interest rate of a US treasury of the same/similar maturity. (source) I ...
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### How does fed cutting federal fund rate affect student loan

If fed cuts rate, it means it's cutting federal fund rate right? then why do loans like credit card and stuend loan? those aren't like Mortgage rate which the fed cuts its rate by buying MBS
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### Difference between yield curve and term structure of interest rate

Can somebody please explain me the difference between yield curve and term structure of interest rate? Thanks
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### mortgage rate in 2008 [closed]

if banks and finanfial entity paniced, which cause people to stop lending which leads to higher interest rate, how did the mortage rate stayed the same in 2008? it barely dropped. It's kind of ...
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### Free Sources of Implied Repo Rate Data?

Are there freely available historical data on implied repo rates? In quick review, what's an implied repo rate? In futures markets, the implied repo rate (also commonly called the IRR) is the rate of ...
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### What does it mean, 'Higher interest rates attract FIIs and FPIs'?

What would interest rates have anything to do with shares? When we say a higher interest rate attracts FII/FPI, does it not mean it is investing in shares of a company? For example, how does it help a ...
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### Why is Keynes attacking the (neo)classical theory of interest rates on the grounds that it is indeterminate?

I do understand that he argues that in order to draw the loanable funds supply curve, you have to already know the volume of income, i.e. production, and therefore the interest rate in advance. But ...
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### loanable funds theory: why is the supply of loanable funds equal to saving (+ dishoarding + new money)?

It seems that the loanable funds theory suggests that all that is saved is supplied in the market for loanable funds. This makes sense when we are talking about 'household saving' (i.e. household ...
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### Will banks in the US continue to offer CDs?

Earlier this year, the Fed abolished the reserve requirement. My understanding was that the motivation for banks offering CDs was because the Fed didn't impose reserve requirements on CDs, so banks ...
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### Why were Treasury interest rates 3-4% in 1999-2000, 2007-2008, but merely 0.6-0.7% now?

rymor comments on Is there a Tech bubble forming? The fact that 10 year treasury rates were 3-4% during the booms in 1999/2000 and 2007-8 is a big difference IMO. Now, you can’t get more than 0.2% in ...