Banks now get a 25 basis point interest rate return on their reserve deposits with Federal Reserve Banks, including their excess reserves.
Series I bonds consist of two components: a fixed interest rate return and an adjustable inflation-linked return, making them somewhat similar to TIPS. The fixed rate never changes, but the inflation return rate is adjusted every six months and can also be negative (which of course brings your total return down).
Following the Icelandic crisis the council renegotiated the terms of the Dexia investment, accepting a lower interest rate in return for the government guarantees.
With the majority of CDOs being backed by mortgages, the principal-only tranche has a known future cash flow, but at a variable rate of return, while the interest-only tranche has both an unknown cash flow and an unknown rate of return on that cash flow.
When you invest in a project your primary concern is that your rate of return exceed the rate of interest that you are paying.
Analysts say investors are increasingly putting their money into stock markets because interest rate cuts had made the return on bonds appear unattractive.
The greater the spread between the high-interest debt and the rate of return on investment, the greater the financial advantage for paying off the debt first.
Even a zero interest rate gives them a positive return.
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As Forbes first reported in February, Harvard's fully invested and overly illiquid endowment, coupled with the use of interest-rate and total-return swaps, caused Mendillo to scramble for cash last fall.
At the same time, the U.S. debt ceiling had been raised by an agreement with the Obama administration and the U.S. Congress and Fed Chairman Ben Bernanke promised to keep U.S. Treasuries at their same low interest rate - nearly 0% return - for the next two years.
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Underlying the rate worries, bonds -- whose fixed return makes them linked to interest rate and inflation expectations - also weakened.
Because the dividends on Laffer Shares would vary depending upon GDP growth rates, the markets would discount the expected cash flows at an equity rate of return, which is considerably higher than the interest rate on government bonds.
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Shop for the best interest rate online to get the best return on your money.
And if you want to (or must) sell, even a small interest rate move can seriously impact your return.
In turn, that lower interest rate should help Kilroy realize a return on the project of about 7%, better than the below-5% return that many investors are getting by acquiring existing buildings.
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Plus, by saving for certain goals together, you can earn a larger return on a high interest rate.
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It indicates that the government is a higher risk for default, and lenders will subsequently demand a higher rate of return with higher interest rates.
While planning is based on the past and projected performance of assets, the risk must be considered, except when it comes to assets that produce a guaranteed rate of return or guaranteed interest.
This was a clever move ahead of Thursday's interest rate cut which meant savers getting even less return on their money.
They could, for example, slow down the pace of lengthening the duration on their portfolios or lower the rates of return on some of the interest rate products they sell.
The person who sets up the trust gets annual payments adding up to the asset's original value, plus a return based on a fixed interest rate set by the Internal Revenue Service.
The Bank of England wants its ECTR - which provides relatively cheap loans, at a minimum interest rate of 0.75%, in return for pretty much any old assets or collateral the banks can provide - to be seen as mainstream funding, not stigmatised emergency funding.
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At equilibrium, all its investments will yield the same expected return, equal to the lending interest rate in non-Islamic banking.
When you do not believe you can earn rates of return greater than the rate of interest on your mortgage from your investments.
The tradeoff here is that you typically give up a bit in the way of stated interest rates in return for the option to raise your rate.
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In a typical Yorkville investment, Angelo would make a loan to a smallish company in return for a note that carried a fixed interest rate that could also be converted into discounted stock.
The appeal is to investors who expect the market to go up, but only a little, explains Satch Chada, managing director in charge of retail structured products at Merrill Lynch: "In a 5% interest rate market you're able to get a 14% return, " he says.
If you need the interest from these investments for income, you can probably get a better rate of return from other investments.
They return about the same as long-term bonds with lower interest-rate risk and pay substantially better than short-term bonds.
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