### Terminology of Rates

It is pretty confusing if you are unsure of the terms used when quoting interest rates. Here is a simple introduction based on U.S. 224 more words

It is pretty confusing if you are unsure of the terms used when quoting interest rates. Here is a simple introduction based on U.S. 224 more words

In a previous post we introduced the notion of the term structure of interest rates. Here we try and understand the *shape* of the term structure. 1,725 more words

Consider the following situation. A businesswoman wants to borrow money for 1 year, but she wants to start the loan at the end of 1 year, i.e. 432 more words

Till we began our discussion on bond markets, we had been working with the following pricing equation with a constant rate of interest, :

But clearly, in the real world we just don’t have one interest rate, but as a 802 more words