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Re: itlogic post# 65672

Friday, 09/21/2007 3:22:49 PM

Friday, September 21, 2007 3:22:49 PM

Post# of 143048
Look at bankrate.com you will see that there is a pretty nice difference in rates. The federal funds rate (the rate that bankers charge one another for overnight loans) is the most volatile rate and is always changing. Discount rate from the fed sets the floor and the federal funds rate trades after that giving some lenders a better position on some loans. This now takes us to the prime rate which is the loan rate charged by commercial banks to their best customers. But if you are a large borrower like a well-known firm with a high credit rating. Your company will likely have access to the commercial paper market and can often borrow below the prime interest rate. Hope that is helpful.
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