Question

Please find the latest values (figures) for the following measures of interest rates in the United States. Please include the source of your information

.

A. The Federal Funds Rate =

B. The Discount Rate =

C. The Prime (lending) Rate =

D. The 90 day U.S. Treasury Bill Rate =

E. The 10 year U.S. Government Bond Rate =

F. The 15 year Fixed Mortgage Rate =

G. The 30 year Fixed Mortgage Rate =

2. What are the definitions of the Prime Lending Rate, the Discount Rate, and the Federal Funds

Rate?

Answer 1

(1)

A	The Federal Funds Rate	1.92%
B	The Discount Rate	2.50 %
C	The Prime (lending) Rate	5.00 %
D	The 90 day U.S. Treasury Bill Rate	2.11 %
E	The 10 year U.S. Government Bond Rate	2.98 %
F	The 15 year Fixed Mortgage Rate	4.25 %
G	The 30 year Fixed Mortgage Rate	4.50%

(2)

Prime Lending Rate:

The prime lending rate is the interest rate charged by bank to their customer on short-term loan. Prime lending rate is determined by the federal fund rate which is the overnight rate that banks use to lend to one another.

The Discount Rate:

The discount rate is the is the interest rate that charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window.

The Federal Fund Rate:

The Fund rate is the interest rate at which depository institutions like bank and credit unions  lend reserve balances to other depository institutions overnight, on an uncollateralized basis. The federal funds rate is an important benchmark in financial markets.