Why do CD interest rates rise as the length of the term goes up?
409357
Because the longer you loan someone money(even a bank) the more risk you are taking.  The biggest risk of a CD is that your rate will not keep up with inflation.\n\nMortgage rates are the same way, a 15 year loan has lower rates than a 30 year loan.
855012
Most people refinanced their homes to get out of credit card debt.  Gold only went up because of inflation.  If inflation drops, then gold prices will drop as well.
870729
Depends on the business I guess. Your second question affects the first. So I'll try to answer that first. An increase in interest rates usually drives up the value (strength) of the currency. The higher the interest rate, the more foreign money and banks themselves invest in that currency driving up its value due to supply and demand laws.\nIf they are an exporter, then that is bad news as it becomes dearer for customers abroad to buy their goods and so they lose business. For importers the opposite applies it being cheaper for customers here to buy imported goods due to the strength of the currency which buys you more(more bang foryour buck).\nRemember though that if, as most companies have to, that they have to borrow money to invest, then higher rates are obviously a disincentive. However higher rates keep down inflation which is of course is a good thing. You are right to be confused as there is no single, easy solution.Otherwise governments would just keep raising rates or freezing them. Like all markets,balance must be maintained.
688950
the short answer is inflation . when inflation is high the fed will raise the interest rate to combat and try to slow down inflation .
252933
I think what you are referring to is called compound interest.  That is when your interest is paid on a regualr basis, like mnthly.  So in the following month you get interest on your principle and the interest you received from the previous months.  This reults in a overall higher rate of return.
773373
because of the longer time frame, so all the variables are multiplied by that longer time frame, like intrest rate risk, inflation risk, etc
606751
When interest rates go up, the economy tends to slow down and consumption with it the sales would likely go down.  The opposite happens with interest rates going down.\n\nWhen a currency gains value with respect to other currencies, it's cheaper to buy goods abroad, so the sales for the local good would go down.  If the currency loses value, the opposite happens.\n\nThere might be exceptions with mandatory goods like bread or Giffen goods.
690336
Interest rate has been going up regardless whether you are using libor or other interest benchmarks.  At this point even if you refinance you won't get that good a rate, plus the penalty you will have to pay.  Most lenders will allow you to extend your mortgage amortization period and keep your monthly payment the same.  Talk to your lender and see if it is an option.  My other advise is to make extra payment whenever you can.  Good luck.
781577
c\n\nIf you go to the site listed below and look at the section entitled "Cost of Debt" you will see the detectability of interest payments begin mentioned.  Since in your question the debt is increased, I believe that "c" is the correct answer.\n\nI hope that this helps.
141241
It depends. You would have to work out the interest rates to see which one will yield you the most money. My guess is that the daily compounded cd will yield the most. Go to http://www.finaid.org/calculators/scripts/compoundinterest.cgi to see what will yield the most over the time period you need.
54607
The general trend of interest rates is moving upward (some analysts said this). Since the price of bond and interest rate has an inverse relationship, hence if r increases then price of bond decreases. Given the assumption that r is increasing, the current price of your bond holdings will be most likely to go down and hence you will incur a loss. This is what we call interest rate risk when one is holding a position in bond. For more research topic on bond risks, go to http://www.investopedia.com. Gud luck
125057
Same reason it makes it go up. Bernoulli's law.
582574
The interst rate has gone up and probably will again in another months time. I would suggest to wait....
563137
I'm not sure, however, some will charge you interest just to keep the card open. In some cases the interest is compounded daily, thats why it is important to watch spending, and pay more than the amount due.
763061
Basically, international interest rates and exchange rates, both spot and forward, are closely connected to each other through "international interest rate parity" . This means that when you invest in a higher interest rate country you expose yourself to currency (FX) risk. That is, you risk that the move in the exchange rate will adversly affect your return in a foreign CD. However, if you hedge your currency risk then that interest rate premium disappears. That is, the interest rate premium/discount is priced into FX forwards and all other derivative instruments.
731073
ING direct is one..IT's paying over 5%..you can take out CD's starting at 6%. It's linked through your checking account. If you need to add money, you transfer it from your checking..if you need it back, transfer it to your account. They raise the interest rate almost every month..good luck
696513
They are adjusted on an inflation basis.  Inflation + 1% is what they set the rates at.  When you bought them and the type of savings bond bond will also affect the rate, albeit slightly.