What are the market interest rates, Macroeconomics

What are the Market interest rates

The most important interest rates from a macroeconomic perspective are interest rates that the government pays on the loans they use to finance the national debt. The government borrows money by issuing government bonds. All such bonds have a fixed nominal amount and a given maturity date.

The government promises to pay exactly the nominal amount (also called the principal or the face amount) to the holder at the maturity date. Some bonds also promise regular payments, so-called coupon payments, at regular intervals, the coupon dates.

 

Posted Date: 9/13/2013 2:53:05 AM | Location : United States







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