Remember, this is the annual interest rate but this is an overnight loan.

Interest rate

Nominal interest rate

Market interest rate

Effective interest rate

That's the interest rate.

166 effective interest rate.

That's the annual interest rate.

It's the annualized interest rate.

This is monthly interest rate.

Gradually the interest rate will increase.

And what's my effective interest rate?

lot of interest, charging you a mid teens interest rate or 20 rate, this is 650 .

This is the interest rate you assume.

Let's say that the interest rate is 25 .

He lends money at a high rate of interest.

All of a sudden we lowered the interest rate.

It exposes the Fed to less interest rate risk.

I'm going to charge the interest rate on that.

And they'll charge an interest rate for lending that cash.

And they want to do two things they want to inject this money into the banking system, which essentially will, hopefully, find its way into the economy, and they also want to lower the interest rate, especially the short term interest rate, this overnight borrowing.

Just overnight.

But the whole point of open market operations is to set this overnight borrowing rate.

The principal times 1 plus and what was the interest rate?

My annual rate looks a lot more like 125 interest, right?

So when I talk about the short term interest rate I'm talking about the interest rate on loans that are made over very short periods of time.

So this is essentially kind of an annual interest rate, but if

So the government has to pay a lower interest rate on it.

In overnight trading

A lot of people, you know, when you hear 10 interest rate or even a 25 interest rate, that no one really makes a big deal about it.

Well, when you lower the interest rate, the terms that are using that discount rate the most, benefit the most.

Corporate borrowing from financial institutions is rising due to the low interest rate.

The interest rate is essentially what percentage of the original amount you borrowed.

I'm talking about base money right over here then the overnight borrowing rate between banks will go down.

They did it overnight.

I don't care whether B's guy is better at getting a low interest rate.

And maybe it'll be another 5 or maybe the interest rate can change again.

When you lower the interest rate, the present value of this future payment goes up.

This is highly rated mortgage backed securities, maybe they have a slightly higher interest rate.

It'll have some interest rate, let me make something up, maybe it's a 7 loan.

And we decided that 50 percent was a fair interest rate for six months, right?

English cannot be mastered overnight.

We stayed overnight in Hakone.

Things cannot be accomplished overnight.

Things cannot be accomplished overnight.