Interest rates fall after Fed stands pat: CHARLOTTE, N.C. — Interest rates fell in the bond market Tuesday after the Federal Reserve said it is still likely to keep a key lending rate at historic lows for an “extended period.”
The yield on the 10-year Treasury note maturing in February 2020 fell to 3.66 percent in late Tuesday trading from 3.70 percent late Monday. Its price rose 12/32 at 99 24/32. The yield of the 10-year note is linked to interest rates on mortgages and other consumer loans.
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Interest Rate Definition
An interest rate is the price a borrower pays for the use of money they borrow from a lender, for instance a small company might borrow capital from a bank to buy new assets for their business, and the return a lender receives for deferring the use of funds, by lending it to the borrower. Interests rates are fundamental to a Capitalist society[dubious – discuss]. Interest rates are normally expressed as a percentage rate over the period of one Gregorian year[citation needed].
Interest rates targets are also a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment.
Effective Interest Rate Calculator
http://www.calculatorsoup.com/calculators/financial/effective-interest-rate.php
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