The Bank of Canada meets on Tuesday to discuss the latest series of economic releases and has to reconcile a current 1% benchmark rate of interest along with a deteriorating take on inflation.
The speculation is that the ECB will cut its current interest rate of 0.75% by half a percentage point.
There is also the problem of reinvestment risk, meaning current bonds are paying a lower rate of interest than maturing bonds are.
The loan has been fully drawn down, matures in five years and accrues interest at LIBOR plus 9.25%, for a current rate of 10.75%, with interest payable quarterly in arrears.
This will require further measures beyond the current zero interest rate policy of the Bank of Japan.
You can think of it as the interest rate that will induce you to put off a dollar of current consumption for a dollar plus interest next year.
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For this group, a common factor in most plans is the utilization of a current market interest rate to convert the monthly pension to a lump sum figure.
In the current low interest rate environment, intergenerational sales of family businesses are particularly easy to structure.
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Other than policies tied to current and expected future values of the overnight interest rate, the Federal Reserve has--and indeed, has been actively using--a range of policy tools to provide direct support to credit markets and thus to the broader economy.
Kansas City Federal Reserve Bank President Thomas Hoenig sounded the inflation-curbing call earlier than Trichet when he said Wednesday that the central bank should consider lifting its target interest rate from its current low point of 0-0.25% that has been in place for more than 2 years.
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The report shows inflation falling to 2 per cent by mid 2015, on the basis that the main bank interest rate remains at its current rock bottom of 0.5 per cent into 2016.
In the latter case, students accumulate interest while in school, at a current rate of 6.8 percent.
With a GRAT, the owner of a company can transfer stock in the firm into a trust for the benefit of heirs and take back an annuity representing the current value of that stock plus a government-specified interest rate, currently 1%.
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So the idea is that if you have one of these loans, you live in the home, you're still current on the mortgage, you'll be able to keep the current interest rate, and hopefully, in a couple of three years, when the housing market settles and more credit is flowing into the housing market, you'll be able to refinance into another mortgage and stay in the home.
The current interest rate charged by IRS is at an annual rate of 4%, but is subject to change quarterly.
Analysts said that the high unemployment and low figure for inflation would make it more likely that the ECB would cut its interest rates later in the year from the current rate of 0.75%.
The current low interest rate environment is ideally suited for Unilever to take advantage of cheap credit available.
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Mr. Martin's current interest payment is 2.5% over a prime rate of 3.25%, which yields a 5.75% interest rate.
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With consumer-backed loans, particularly with mortgages, the rate of prepayment on the loan is rather predictable depending on current interest rates and economic conditions.
The liquidity and trading in those older issues is so tiny that it doesn't give much guidance as to the potential cost for the government of borrowing substantial sums at what are known as ultra long maturities - but for what it's worth the 1932 war loan pays an implicit interest rate of 3.9% at its current price.
Superficially, there is some basis for the official view that the worst of the crisis is over: Interest-rate spreads, current-account deficits and budget deficits are down.
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The Item Club also says that the government's choices include sticking to the current inflation target of 2% - which could mean no more interest rate cuts for some time, and therefore lower economic growth.
We forecast the daily volume of interest rate contracts to reach nearly 11 million by 2017 from its current level of about 5 million.
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The quite popular Black-Scholes calculator figures the value of warrants using current price, strike price, time until expiry, interest rate risk and share volatility as variables.
Finally, realize that even in the current low interest rate environment, short-term, low-yield bonds offer the advantage of liquidity and little downside risk, allowing them to potentially play an important role in your portfolio.
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Their interest-rate decisions can therefore reasonably be taken to incorporate judgments on the current state of their national economies.
The dynamics behind the current low interest rate environment, suggest to me that low, low rate are here for the balance of this decade.
For now Moynihan is clearly banking on cost-saving measures associated with mass layoffs to help convince stock market investors that Bank of America is headed in the right direction and can deal with the current low-interest rate environment, mortgage-related legacy issues and new international banking capital requirements that Moynihan said were the biggest challenges facing his bank.
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