a generic tag for question on rate of interest applicable. Ideally should be accompanied by geography tag and other specific subject tags

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1answer
12 views

Determining annual inflation rate from bimonthly cpi growth rate?

I've been unable to find a concrete answer to this question so I assume I am overlooking something incredibly simple. In order to determine the real interest rate, I am required to use the nominal ...
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0answers
27 views

How interest rate affects currency [closed]

I am quite new to economics. I was reading about changes in interest rates and its effect on currency value. The fact is as interest rates increases, the currency value also increases and vice ...
1
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1answer
55 views

If/When the Fed raises the interest rate, how much will this affect my ARM?

I have a home equity line of credit with an adjustable rate. Currently (as it has been for quite some time), it's sitting at 3.5%. I understand that we're not sure how much interest rates will rise, ...
3
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1answer
113 views

Anyone have experience with Brink's 5% savings account?

If you get a Brinks prepaid MasterCard (no initial fees, and you can even get a $20 signup bonus) and go through some other gyrations, you can presumably get access to a 5% FDIC-insured savings ...
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1answer
36 views

Will interest rates on bank deposits ever fall close to 0 percent in India? [closed]

I wanted to know if interest rates will ever fall to close to 0 percent in India. + I would like to know that as close to 0 interest rates might affect the income earned through debt instruments at ...
0
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1answer
54 views

Savings account with fixed interest or not?

Me and my wife are renting our apartment and we're both students with part time jobs. We are saving up for a condo more suitable to our needs, we would like to have our down payment within five years. ...
1
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1answer
63 views

Strategy to save the most on interest

I'm planning on applying for a credit card that offers 0% APR on balance transfers for 15 months and $0 balance transfer fees. I'm thinking on using this card to pay down some of my student loans. ...
0
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1answer
57 views

Compounded and Simple Interest Rates

Suppose we have a loan worth 10000 that is being repaid late as a lump sum on a given day 30 days after the due date. Suppose the original interest rate is 5% so that the amount owed before late ...
0
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1answer
88 views

Shouldn't nominal interest rates be illegal? [closed]

First of all, I'm really new to anything related to financial math and the like, but I just can't get my head around these nominal interest rates. The way I'm getting it is that it's just a euphemism ...
2
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1answer
111 views

How do rate locks work when buying a property?

We recently "locked" our rate on a rental property we are buying at 4.875. A day later, drops back down to 4.625. Can we no longer get the 4.625? Are we "locked" in at that rate thru closing?
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4answers
758 views

Is it possible to get a 3% yield that is FDIC insured or super low risk?

I just graduated from college and i am already planning my retirement. I know about 401k and i have that figured out already but in terms of money sitting in my bank account post retirement, assuming ...
2
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2answers
79 views

Is this Employee Stock Purchase Plan worth it when adding my student loan into the equation?

Here are the details of my company's Employee Stock Purchase Plan: An automatic 5% purchase discount off the fair market value of the stock. Payroll deductions start on July 1st. The stock purchase ...
2
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0answers
37 views

Effective Interest Rate Interpretation

Assume a $1,000 loan for 24 months, with monthly interest rate 2.5%, and monthly payments ($55.91 as calculated by any online tool, e.g. here). This will give us annual interest rate (air) of 30%, ...
2
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3answers
86 views

Are a bond's yield and interest rate the same thing?

Are they the same thing? Is yield the annualized return rate? Why when yield rise, yearly return increases, but price falls?
3
votes
1answer
66 views

Investments minimally affected by Federal Reserve rate increases?

What short term investment instruments would be a good option when the Federal Reserve funds rates are anticipated to rise? My understanding is bonds will decrease in value since the newer bonds with ...
1
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1answer
57 views

Do we pay interest rates when holding a bond?

When we try to find the present value of a bond I understand we should discount the coupon payments and the face value by the ''current interest rates''. My question is what are these interest rates? ...
1
vote
1answer
77 views

Are Target Funds Unsafe - Post Q.E.?

It appears that Target Funds are becoming more common for employer sponsored plans, and these are billed as a safe way to prepare for retirement. For people who plan to retire over the five to ...
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votes
5answers
199 views

What does “interest rates”, without any further context, generically refer to?

There's an old Far Side cartoon where someone discovers a guy in a room full of telephones behind a door labeled 'They' and shouts something like "MORTIMER STANLEY! So you're the they in 'That's what ...
0
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1answer
96 views

Why does a high inflation strengthen a country's currency? [closed]

A low interest rate increases money supply, which leads to high inflation. Now, how does that high inflation automatically translate into strengthening of the country's currency? If anything, because ...
3
votes
1answer
153 views

Low-interest 30yr mortgage - can the bank pull a fast-one?

I'm on the cusp of signing a 30-year fixed mortgage at 3.8% interest (I might even be able to negotiate it down to 3.6%). Looking at historical interest rates, it's a dead-certainty that interest ...
2
votes
2answers
348 views

Is APR the same as Interest Per Annum?

I'm a tester working for a high cost, short-term loan credit company in the UK. Recently, the Financial Conduct Authority (FCA) issued a policy on statements which includes information on how they ...
0
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3answers
139 views

Is buying puts on a ten-year treasury ETF a good way to hedge mortgage rates?

I'm looking to hedge against rising thirty-year mortgage rates for the short term while we are house shopping. Would buying an appropriate number of put options on something like IEF (iShares ...
0
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0answers
198 views

Car loan - Hard inquiry and credit score hit

I recently purchased a new car. Total outdoor price is 20K. I paid 6K and financed the rest. Before I walked into the dealership, I had a preapproved loan from the only bank I applied. It was around ...
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votes
3answers
120 views

How can banks pay interest on money they borrow from the FED? [closed]

I'm not sure if this is the right site to ask this question. If it's not, please point me in the right direction. So, if the FED is the only institution that can increase the monetary base (create ...
0
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1answer
41 views

Rate used for approval on a 5/5 ARM?

When applying for a 5/5 ARM with a 2% cap each adjustment, a 6% lifetime cap, that starts out at 2.5%, what rate will the lenders generally use to qualify you for the loan when computing your debt to ...
1
vote
1answer
26 views

'longer-term/lower-coupon bonds' vs 'shorter-term/higher-coupon bonds'

[Source:] Arthur Salzer, B.A. Econ. (McMaster University), CFA, CIM “Remember that longer-term/lower-coupon bonds go down more in price than shorter-term/higher-coupon bonds do when interest ...
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1answer
26 views

'When the rising rate cycle gives way to a decline in borrowing costs, bond funds will …'?

[Source:] Bonds fall in value when rates rise, and this will be reflected in the unit price of bond funds. When the rising rate cycle gives way to a decline in borrowing costs, bond funds will rise ...
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0answers
41 views

Estimating rates on potential loans without officially applying

Is there any way to estimate the rates on a potential loan without applying? I'm thinking of some calculator that takes into account: Loan type (auto/revolving/installment/mortgage/etc) Your income ...
3
votes
4answers
208 views

What to do with this cash- pay off ONE card, or pay down a few?

I've got a $5k payment coming through with about $12k in CC debt, over 4 cards. 1 card is at $3000 (total line is $4k), 14.8% interest rate, another at $3450(total line is 4.5k), 19.3% interest rate, ...
4
votes
1answer
155 views

Can I and should I put my dad's Parent PLUS student loan under my name?

My dad took out a loan for me to go to school that currently has a principal of $58,000. Its interest rate is 7.5%. Even though it's not technically my loan, I'm paying all of it by the agreement my ...
1
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1answer
86 views

How can the interest on a savings account be higher than the mortgage rate?

Look at http://www.ratehub.ca/mortgage-rates-vancouver and observe mortgages available for 2.0% - 2.05%. Look at http://www.tangerine.ca/en/landing-page/bonus50/index.html it gives you 2.5% interest. ...
2
votes
1answer
255 views

Calculating total number of monthly payments in Excel using NPER and PMT?

How to calculate the total number of monthly payments given the amount of loan ($275,000), the annual interest rate (4.35%) and the number of years (30)? I'm confused because I'm trying to use the ...
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1answer
58 views

Making sense of mutual fund returns

Looking at a mutual funds returns, sometimes I see a 5 year return of 20% and 1 year return of 100% (both annualized). Does that imply that the growth was 0 in the year n-5 to n-1, and the growth of ...
0
votes
2answers
93 views

Does it make sense to invest in bonds when interest rates are likely to rise? [closed]

Thinking about a possible increase in interest rates in the future, does it make sense to invest in bonds? Would the price of a bond fund holding mostly AAA rated Fannie/Freddie issues, and medium ...
1
vote
4answers
505 views

How to calculate Annual Percentage Rate of a loan with unequal periodic payments?

Let's say we borrow a loan of $1000. We pay back to bank $100 per month but for some stupid reason the last payment is smaller and equals $50. This is a common case in my country. How then the APR ...
0
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1answer
37 views

Incorrect XIRR value of installment loan?

Using a financial calculator I was able to determine the interest rate of an installment loan with principal of 14975, payments of 444.56 and 60 month term is .2557%. However, when I put the loan ...
0
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1answer
50 views

How do I know what is the current market interest rate for bonds?

It's said in books and articles that when the "interest rate" rises, the price of bonds becomes lesser, and vice versa. Intuitively, this is reasonable since bonds with higher interest rates are ...
2
votes
2answers
86 views

How do banks calculate interst on savings account

Sometimes, I see banks advertise rates on savings accounts like this: Interest is calculated daily and compounded semi annually. Now if it is compounded semi annually , how can it be calculated daily? ...
1
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1answer
104 views

Why are U.S. Treasury interest rates are so low vs. other nearly risk-free rates?

I was reading Options,Futures and Other Derivatives by John Hull and I came across the question: Why are US Treasury rates significantly lower than other rates that are close to risk-free? I ...
2
votes
1answer
69 views

Lend money at a rate linked to the prime rate

Are there any fixed income investments for retail investors that offer a rate that is fixed to the prime rate (like : prime - 1%). Usually it is easy to borrow money at rates that are linked to ...
1
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0answers
56 views

Can I choose to refinance only some of my loans even if they are from the same lender?

I am looking for guidance on what to do about paying back my student loans. Unfortunately I work in the Human Services field and have not been able to afford to make significant payments on my loans ...
-4
votes
1answer
48 views

How decreasing the prime interest rate helps to offset decreasing oil prices [closed]

Bank of Canada said that it is reducing prime rate to offset the effect of decreasing oil prices. I could not follow how decreasing the prime rate will help counter the effect of decreasing oil ...
0
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0answers
62 views

Make money based on interest rate cut in Canada

Bank of Canada recently announced reduction in its prime rate. As a Canadian, is there a way to take advantage of it? For example, if I bet that in the next 12 months, the rate would increase, how can ...
1
vote
0answers
437 views

Effects of interest rate changes on long term bond funds

I realize this question has been asked a bunch of different ways over the years, but I was hoping to get specific opinions on how a Fed interest rate increases will effect long term bond ETFs (i.e.- ...
1
vote
1answer
279 views

Private student loan balance not moving

I need help trying to figure out how to pay down my private student loan. The balance is almost $20,000. Sadly at the time that I took the loan, the interest rate was 8.75% (I think it was actually ...
10
votes
3answers
1k views

Why deposit interest rate in the same currency is different from country to country? [duplicate]

My bank offers 11% interest rate for 1-year deposit in USD. This is similar to what other Ukrainian banks offer, but much higher in comparison with our neighbourhood countries, Belarus (3.5%) and ...
1
vote
1answer
113 views

Why would my mortgage payment change if the interest rate stayed the same?

I just received a letter from my bank , stating that my yearly rollover interest rate would not be changing. As of now we pay $353.72 on the principal and 61.63 on the interest. This loan is almost 18 ...
16
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1answer
3k views

Did Greece really issue bonds to investors yielding 42% interest?

I read this in the news regarding Greece's financial crisis: The country’s 10-year bond yield fell 11 basis points to 8.04 percent at 12:26 p.m. in Athens today. While that’s down from a record ...
2
votes
1answer
74 views

How do margins on tracker mortgages (variable rate mortages) vary over time?

One kind of mortgage, in the UK at least, is a tracker: the interest rate is equal to the central bank's base rate of interest, plus a constant margin. The margin can apply for the lifetime of the ...
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votes
6answers
517 views

23 and on my own, what should I be doing?

So I graduated in May with a Computer Engineering degree and started work in September at a major bank located in Jersey City and moved in with a couple of college friends in an apartment in Astoria, ...