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Types Of Interest Rates
Defintions Of The types Of Interest Rates
7
Business
7th Grade
09/07/2012

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Term
Prime rate
Definition
the rate banks make available to their best business customers.
Term
Discount rate
Definition
the rate financial institutions are charged to borrow funds from Federal Reserve banks.
Term
T-bill rate
Definition
the yield on short-term U.S government debt obligations.
Term
Treasury bond rate
Definition
the yield on long-term U.S government debt obligations
Term
Mortgage rate
Definition
the amount individuals pay to borrow for the purchase of a new home
Term
corporate bond rate
Definition
is the cost of borrowing for large U.S corporations
Term
certificate of deposit rate
Definition
is the rate for six-month time deposits at savings institutions
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