How do Bonds work in Japanese market if there is zero interest rates?
2007-07-24 00:06:14 · 2 answers · asked by ? 4 in Business & Finance ➔ Investing
Take Finance 101 ..
Interest Rates are totally dependant on 'risk' = as you would know if you compared UK Mortage rates (6%) against Secured Personal Loans (12%), (unsecured) Credit cards (18-24%) and loans to those with bad credit (CCJ's ect. = anything from 30% to 60% and upwards) ...
Bonds are no different .. just because the central banks in Japan have a 'risk free' headline base rate of 0.5% does not mean that any 'real' company can borrow at 0% .. (real Companies most likely pay 1 to 3%).
2007-07-24 05:15:21 · answer #1 · answered by Steve B 7 · 0⤊ 0⤋
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2016-10-19 07:02:20 · answer #2 · answered by costarakis 4 · 0⤊ 0⤋