How can the behavior of market interest rates and bond returns over the past 50 years be described? Do swings in market interest rates have any bearing on bond returns?
How can the behavior of market interest
Interest rates on deposits and other investments are determined by the combination of the money market's supply and demand for cash.
A lender charges a borrower an interest rate that is a percentage of the principal (the amount borrowed). The annual percentage rate (APR) is the term used to describe the interest rate on a loan (APR).
An interest rate can also be applied to money earned via a savings account or a certificate of deposit at a bank or credit union (CD). The income generated on these deposit accounts is referred to as the annual percentage yield (APY).
Step by step
Solved in 2 steps
