benchmark 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 maturity plus a premium. Also called base interest rate.

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You should try to do your best to shop around and get the benchmark interest rate if you can find it.

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The benchmark interest rate was important to pay attention to and I thought we all had to remember how it worked.

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For bonds and securities that are not from the Treasury, the benchmark interest rate shows how much profit could be obtained from the yield.

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