Long-Term Interest Rate

Long-Term Interest Rate

An interest rate on a financial instrument with a maturity of longer than one year. A long-term interest rate is usually (but not always) higher than a short-term rate because of the added risk of committing capital to a person or project for such a long period of time.
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Bonds may be converted to bear interest in a daily, bond interest term, auction, or long-term interest rate mode.
But a trader at a foreign-affiliated brokerage firm said there is ''little room'' for further declines in the long-term interest rate, unless a fresh incentive triggers more buying, citing the growing caution among investors over precariously high prices.
The bonds initially bear interest in the weekly rate mode but may be converted to a daily, short-term, auction or long-term interest rate mode.
The bonds will initially bear interest in the weekly interest rate mode, but may be converted to a bond interest term (BIT) or long-term interest rate.
The bonds initially bear interest at the weekly interest rate but may be converted to a daily, commercial paper, or long-term interest rate mode.
All COPs are subject to mandatory purchase: on the conversion of the interest rate mode; upon termination, expiration, or substitution of the SCPA; on the day following the last day of each short-rate interest term; and on the day following the last day of each long-term interest rate period.
But the long-term interest rate rose slightly due to selling on position squaring ahead of the 20-year bond auction on Thursday, traders said.
The long-term interest rate is "expected" real growth plus "expected" inflation.
These rating actions are in connection with the city's plan to convert the bonds to an initial long-term interest rate mode.
According to Mitchell Adelstein, CRG President, "The borrower clearly had the option of waiting until the loan matured, but we delivered a comprehensive strategy that eliminated long-term interest rate risk and created substantial savings due to rising short-term interest rates.
This relatively benign long-term interest rate environment has certainly been a benefit to fixed income investors, including high yield.
The bonds initially bear interest in the weekly rate mode, but may be converted to a daily, bond interest term, auction, or long-term interest rate mode.

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