a generic tag for question on rate of interest applicable. Ideally should be accompanied by geography tag and other specific subject tags
3
votes
1answer
27 views
U.S. Bonds Taxed Interest and Current Value
Series EE Bond just matured and I cashed it in.
The current value that I received in cash was only a little more than the original face value.
However, the interest I am paying taxes on is half the ...
2
votes
1answer
41 views
How can I estimate the sensitivity of a bond ETF's price to interest rate changes?
Is there a standard method for estimating the sensitivity of a bond ETF's price to interest rate changes? Some of the information I have includes the average duration and the SEC yield.
-2
votes
0answers
34 views
When calculating CIP between EU and US, which interest rates data to use?
I am wondering which data to use to test the Covered Interest Rate Parity between Europe and the United States. Recap that for the CIP to hold, it should mean that
F/S = (1+r)/(1+r*) where
F = the ...
1
vote
2answers
64 views
Interest rate question
I'm having a little trouble figuring this out. Suppose I took out a loan with the following terms:
Loan Amount: 1,000
Interest Rate (APR): 10%
Compound Frequency: Monthly (12 compounding periods)
...
2
votes
5answers
219 views
Whether to prepay mortgage or invest in stocks
If at the end of the year, I have 10k in hand that I want to save/invest and these are my options:
1.Prepay into mortgage. Rate is 2.1%
2.Invest in stocks and I know I can get at least 7 % return.
...
2
votes
1answer
72 views
Why do short-term term deposits and GICs pay more than longer ones?
ING Direct is currently offering 2.5% interest for a 90-day GIC, 1% for 180 days, and 1.5% for 270 days.
What would be the advantage of locking my money in for longer if I'm just going to get paid ...
3
votes
2answers
60 views
Fixed-rate mortgage vs HELOC
Why is it that a home equity loan or a home equity line of credit comes with a higher interest rate than a 15-year or 30-year fixed-rate mortgage?
10
votes
5answers
386 views
What are the advantages of paying off a mortgage quickly?
What are the advantages of paying off the mortgage quickly??
Sure, not paying interest and truly owning your house is great, but then the money is tied in a fixed asset, and if you want to get at ...
3
votes
1answer
92 views
How do interest rates work?
My question is very simple. I am considering a CD for my money, but I don't know a whole lot of the financial math that goes into that kind of stuff. My question is about interests rates. Do CD's ...
2
votes
0answers
60 views
New construction closing in a year; how can I lock in mortgage rate?
I've just contracted for a new house in Florida to be built. The closing won't occur for approximately a year. Is there a way to lock in a mortgage interest rate for so long in the future? It will ...
1
vote
1answer
86 views
Is $0 unpaid interest on a student loan effectively 0% APR?
I have two loans: Unsub Consolidation Loan and Subsidized Consolidation Loan, both at a 6.5% fixed rate. However, I've paid all the accrued interest. Therefore, if I were to "start fresh" today; would ...
0
votes
1answer
30 views
Why are there two interest rates shown on streamline eligibility notices?
I recently received a "streamline eligibility notice" advertisement that says:
Today's current interest rates are as follows:
2.750% Fixed / 3.192% APR
Pardon my ignorance but I'm confused on ...
10
votes
4answers
454 views
Why would anyone buy a government bond?
In my country, the interest rates on government bonds are currently 2 - 3%, but I have money in a term deposit at the bank which earns 4% interest. I don't understand how this can be possible. Why are ...
1
vote
1answer
84 views
Find monthly interest rate from principle, monthly payment, and loan's term?
Is there a formula to find the monthly interest rate required on a compounded interest fixed-rate mortgage loan, given the principle, the monthly payment, and the loan's term?
2
votes
2answers
88 views
Mortgage and/or unit trust
I will be purchasing a property soon, so my question is the following:
Do I pay off my mortgage off as soon as possible (by paying more every month) or do I put the same amount extra into some unit ...
6
votes
1answer
158 views
Why aren't companies calling their 7%+ notes if interest rates are so low?
Here's an example of a corporate fixed income issue: GOM. General Motors Acceptance is paying 7.375%. It's callable at $25, which is right around where it's trading. (That's par.) Since interest rates ...
7
votes
1answer
210 views
Is it correct to take interest swap rates as a prediction of future bank rate?
In the context of managing the risk of (non-fixed rate) debt where the interest rate is linked to a bank base rate, I want to understand how/where to get a sense of where a bank's base interest rate ...
4
votes
2answers
138 views
Why is my mortgage rate for a refi higher than the prevalent market rate?
I'm refinancing my house at the moment. We have great credit (high 700s). We're getting a 15 year fixed and have locked in a rate of 3.5%. Current market rate seems to be about 2.88%. The mortgage ...
10
votes
2answers
506 views
Should I pay off zero interest debt early?
My cash reserves are around $11k, including an emergency fund of about a month and a half, and I budget rigorously. The only debt I have is $7k at zero interest, paid at $300/month, and it's from a ...
3
votes
3answers
2k views
What Excel function to use to calculate the return or interest rate on a savings account?
I'm getting confused by Excel's various different financial functions. Which one would I use to answer the following two questions and how?
Suppose that on October 1st, 2012 I open a savings account ...
0
votes
0answers
31 views
Concerning interest rates in US bank accounts, where can I find good interest rates? [duplicate]
Possible Duplicate:
How to find a savings or money market account with a high interest rate / yield?
I just moved to the United States for school.
I opened a bank account at Bank of ...
3
votes
1answer
209 views
How to determine the interest rate?
I'm really not good at math. So please forgive me for this noob question that I have.. Just trying to learn basic percentage calculation with money lending..
Here's an example of how the APR ...
3
votes
1answer
160 views
How to find a savings or money market account with a high interest rate / yield?
I have my emergency fund in an ING Direct savings account. The saving account does not really give a good return and I was wondering what are my options?
I want to put the money in some sort of ...
0
votes
1answer
146 views
How can I determine the interest rate, given increasing monthly deposits and a final amount?
I need help to determine the interest rate of this investment.
The initial value is nothing
The monthly investment is R500.
It stays R500 a month until the year is over and increases by R50. Thus, ...
3
votes
1answer
810 views
Calculate Future Value with Recurring Deposits
I am familiar with the formula for calculating FV and compound interest of a deposit, but I am wondering if there is a formula that will allow me to calculate how much money I will have after ...
0
votes
1answer
43 views
Swap Agreements Repository
Can anyone suggest me a place/repository where I can download sample Swap agreements/contracts for free? better if those agreements are Interest Rate Swaps documents.
2
votes
1answer
121 views
Any smart way to get the interest down on our student loans?
Trying to figure this out. I have a student loan $24,000 at 6.55% with Nelnet, and my wife has $48,000 at 5.2% with Mohelo. We have a home worth $220,000 with $40k in equity, and the rest at $180k at ...
3
votes
1answer
2k views
What are libor swap rates?
In the Wall Street Journal there is a list of Money Rate Benchmarks. Of them I noticed a benchmark lists as Libor Swaps (USD).
The description is "Libor Swaps quoted are mid-market, semi-anual swap ...
1
vote
2answers
111 views
Is it good enough to close the existing saving account and open new saving account at another bank for higher interest?
I have a saving account which can earn at most 0.25 %p.a on BANK A.
I have another despoit account in BANK A for my daily usage.
I found BANK B is offering 0.4% per year for the saving account.
...
1
vote
1answer
215 views
How to calculate this interest rate MSA in DBS bank (SINGAPORE)?
This morning, I check Montly Saving Account of DBS bank Singapore.
I tried with their calculator via this link
and came up with this.
Total monthly savings $ 3,600.00
Total interest earned $ ...
6
votes
2answers
457 views
CD interest rate US vs abroad, is there a catch?
I was in Ukraine and ran into a few banks that offer anywhere from 5% to 10% interest rate on investment per annum. For example, Erste Bank is willing to pay 5,75% on 12 months deposit. I have few ...
5
votes
1answer
91 views
How can I model changing interest rate scenarios?
I'm looking for some advice on how to model a changing interest rate using a spreadsheet.
I maintain a basic spreadsheet which I use to predict the future state of my home mortgage based on a number ...
8
votes
2answers
178 views
What does “Yield Curve” mean?
In the financial news we often read about the Yield Curve, what exactly is it?
12
votes
4answers
541 views
Can someone help me understand my student loans?
I have more loans than these but I am wondering how to handle these three (all with the same bank):
3%, last payment ~$36, current balance $6153, original amount $5500, payoff balance $6170
2.5%, ...
1
vote
0answers
120 views
Formula to decide when to break a CD?
I'm trying to create a CD comparison tool and have been working on a formula to compare a CD with a higher interest rate to a CD I might own with a penalty period. I believe the basic formula idea:
...
3
votes
3answers
200 views
How can I predict which way mortgage rates are moving?
I've been thinking about refinancing my mortgage, but I'm not sure if I should wait a week or two for better rates, or lock in what they are offering today. How can I make an educated guess?
12
votes
6answers
1k views
Why are interest rates on saving accounts so low in USA and Europe?
For example, in USA interest rates are 1-2% percents, while in Russia it is normal to have up to 8% anually for US dollars account. Same goes for Euro. For Russian ruble it can be up to 12%, but with ...
1
vote
2answers
178 views
How to bet on Japanese government bonds interest rate going up in the coming years?
Is there a way for a private individual investor to bet on Japanese Government bonds interest rate going up in the coming years?
1
vote
1answer
111 views
PV problem: lump sum payoff or continue quarterly payments
I am is faced with a choice of two alternatives. There really is no right or wrong answer, I just want to hear someone else's input/methodology. Here are the two choices:
Keep paying $5,722.56 for ...
0
votes
2answers
141 views
Formula for recalculation of a bad loan, i.e. where payments were missed?
I need to know if exists any formula to calculate interest rate, principal interest, total amount to be paid, in the case of a bad loan.
Ex: In a bank exists a 20 year home - loan. The client was ...
6
votes
6answers
633 views
Is it better to buy a computer on my credit card, or on credit from the computer store?
I am interested on buying a computer (approximate cost USD 600).
I can pay for it either with my credit card, or apply for credit in the computer store.
What are the advantages of using one form ...
-1
votes
1answer
118 views
What's the Effective Interest formula used by this loan calculator?
I used a loan calculator which gives an effective rate of 80.781 whereas wikipedia http://en.wikipedia.org/wiki/Annual_percentage_rate gives a rate of 49% for these parameters:
borrowed: 100
fees: ...
0
votes
2answers
349 views
How to calculate equal payments based on different interest rates?
Below, I have a cash flow chart showing the loan received ($30000) at the beginning, and three equal payments (amount we want to know [x on chart]), based on their period, for reimbursement of loan:
...
8
votes
2answers
193 views
How does Paying credit card in full VS paying with interest will affect your credit score?
What is the effect of paying credit card in full or with interest on your credit score?
6
votes
4answers
443 views
Why can't the Fed lower interest rates below zero?
Ben Bernake said today that he can't lower interest rates further because they can't be lowered below zero. IIUC benchmark interest rates are determined by what someone is willing to pay in an ...
1
vote
1answer
59 views
Are England exchange rates & import prices based on the Bank of England interest rate?
Are England exchange rates and import prices based on the Bank of England base/interest rate?
Basically, I just wanted to know how and if import prices and/or exchange rates in England have the Bank ...
3
votes
1answer
93 views
Better rate for investment between CD or savings
I have been considering either renewing my CD (Certificate of Deposit) from my local Credit Union which is at 1.35% APR (1.3591 %) dividend rate (monthly compounded) for one year. I recently noticed ...
6
votes
7answers
352 views
How smart is it really to take out a loan right now?
With the economy in its current state (i.e. horrific), interest rates on loans are very low right now. I have heard people say that right now is a 'good' time to take out a loan, and that it is a ...
1
vote
1answer
165 views
My government hasn't paid me a sum they should have paid a year ago. How much interest should I demand?
So, my government owes me a sum of about 350 USD that should have been paid exactly one year ago.
I call them every week, and they always tell me that they need more time.
Apparently they will pay me ...
1
vote
1answer
2k views
How long to wait before refinancing a high interest car loan, after improving credit history?
I had no choice but to finance a car loan at a pretty disgusting rate (14%) thanks to "insufficient credit history" back in the end of September. My credit score was good.
Now it's January; I've been ...
