base interest rate

Definition

The minimum interest rate investors will accept for investing in a non-Treasury security. In general, this is the yield that is being earned on the most recent on-the-run Treasury security of similar maturityplus a premium. also called benchmark interest rate.

Use base interest rate in a sentence

You should always shop around to make sure that you get the best base interest rate that you can get.

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It is important to understand all of the terms of a loan, not the least of which is the base interest rate and the manner in which it is calculated.

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When looking at a traditional treasury bond, the yield the security delivers is incredibly important and investors look at the base interest rate to see what will be profitable.

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