
Floating Interest Rate Definition & Example | InvestingAnswers
Sep 29, 2020 · In another example, if your mortgage interest rate is a floating rate (that is, it is adjustable), your rate rises and falls with the market and you and your payments get to go …
Interest Rate Swap | Example & Meaning | InvestingAnswers
It can hedge its exposure to interest rate changes by exchanging its floating rate loan payments for fixed-rate payments. This is a good example of how counterparties might use an interest …
Swap Definition & Example | InvestingAnswers
Oct 6, 2020 · The party paying the floating rate ' leg ' of the swap believes that interest rates will go down. If they do, the party's interest payments will go down as well. The party paying the …
Money Market Fund | Definition & Examples | InvestingAnswers
Jan 9, 2021 · Prime money market funds invest in floating-rate commercial paper. Floating rate (also called variable rate) refers to an interest rate that rises or falls either with the market rate …
Fixed Rate Certificate of Deposit (CD) - InvestingAnswers
Dec 29, 2020 · Fixed Rate Certificate of Deposit Definition A certificate of deposit (CD) is a savings investment where the investor commits to depositing funds for a set period of time, …
Adjustable Rate Mortgage (ARM) - InvestingAnswers
May 18, 2021 · An adjustable rate mortgage (ARM) is a type of mortgage using a varying interest rate calculated by adding a premium to a specific benchmark rate. These loans are also called …
Financial Terms Starting with F | InvestingAnswers
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Zero Coupon Bond Definition and Example | Investing Answers
May 20, 2021 · How Interest Rate Fluctuations Affect the Price of Zero Coupon Bonds Zero coupon bonds are sensitive to interest rate fluctuations. The price you can get on the open …
Mortgage Rate Lock Float Down - InvestingAnswers
Sep 29, 2020 · A mortgage rate lock float down is an enhancement that not only allows a borrower to lock in a specific rate but also allows them to obtain a lower rate should interest …
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An interest rate is the cost of borrowing money, or conversely, the income earned from lending money. Interest rates are expressed as percentage of the principal per ...