What are the rates of the Ministry of Finance?
Bond rates of the Ministry of Finance are interest rates paid by the US Treasury (Treasury) for securities issued to bond holders using their money. Treasury issues accounts, notes and bonds, but the public usually applies to all three state securities together as "cash register bonds". Interest rates for bonds are set at weekly treasury auctions and are determined by a price that large financial institutions are willing to pay for bonds through competitive offering. Treasury bonds can be purchased by individuals and foreign or domestic entities. Many foreign governments use their surpluses of the national budget to buy treasury bonds as an investment. In fact, US state debt is a total amount owned by the government to outstanding bond holders, plus money that the government must pay for certain national accounts, such as the social security of which the government has borrdlužné funds.
Bond is a money loan in exchange for a guaranteed interest of the interest payment during the loan period and the principal of the principal of the loan on the date of the loan. The accounts of the Ministry of Finance, Notes and Bonds vary at the time of which it takes to be lent within each of them to become due. Bonds are considered one of the safest investment vehicles, because interest and repayment are supported by the full faith and loan of the US government, which is considered very unlikely that its obligations would fail. The Ministry of Finance, reflecting one of the safest possible investments, compare interest rates of other debt securities.
2 These financial institutions determine how much they are willing to pay for bonds based on their current value of future interest payments and the main guaranteed government, taking into account inflation and the possibility that interest rates will drop up or down in the future. Final price fromapplauded by the highest bond candidate will be either less or more than a nominal value, which reflects if the bond has been purchased for a discount or for bonuses.Rates of the Ministry of Finance and Bond revenues are the basic factors for determining interest rates on the domestic market and are also very influential in setting international interest rates. In the US, all other types of bonds and debt securities compare their interest rates based on the cash register rate. Any debt security or bond offered by a company or other private entity, which is considered to be a higher risk than government treasury bonds, must offer a higher interest rate or return than comparably marked Treasura securities.