Prime rate

Interest. The interest for eaeh year must be calculated for the type of loan expected. The interest rate can be obtained from the company s financial section, recent loan history, or the literature. The Wall Street Journal publishes the weekly interest rates for several borrowings. The company s interest rate will probably be the banks prime rate, or slightly higher. 

Moody s Average Industrial Bond Yields (Per Cent) Prime Rate on... 

Wegner also treated the case wherein assembly is coupled to nucleotide hydrolysis. Here, we consider a slight modification of his model to deal with the microtubule process. Normally, the concentration of GTP is maintained by use of a GTP-regenerating system (MacNeal et ai, 1977), and the system at the steady-state plateau of assembly can be described as in Scheme II. Under these conditions, the assembly-disassembly reactions are no longer reversible, and the primed rate constants are used to emphasize that we are dealing with a different case. The rate equations for the two ends are now given as ... 

Primed rate constants (P) are used in schemes for substrate hydrolysis, and unprimed rate constants k) in schemes for phosphate binding. 

For electricity, a utility s rate structure represents an average of the cost of new plant and equipment plus older, less expensive facilities. For example, a utility might charge an industrial customer at a rate of 2.6 cents per kilowatt hour (kWh), based upon an after-tax return on assets of about 8%. If this electricity were to be produced exclusively from new plant facilities, the rate would have to rise to 4.1 cents per kWh in order to realize the same return on assets. Of course, the allowable return for utilities is now usually higher than 8% (with higher prime rates, rate-setting bodies may permit returns of up to 12%). Thus, marginal costs for electricity will rise still further. 

The U.S. market also includes adjustable-rate mortgages, or ARMs, which reset interest payments at specified intervals to a specified shortterm interest rate index. The interval between resets can be a month, six months, a year, or longer. The interest rate is usually set at a spread over the reference rate, which can be market-determined—the prime rate, for instance—or calculated based on the funding costs for U.S. savings and loan institutions, or thrifts, as indicated by one of the thrift indexes. The two most commonly consulted thrift indexes are the Eleventh Federal Home Loan Bank Board District Cost of Funds Index, or COFI, and the National Cost of Funds Index. 

Examples of lagging indicators include the unemployment rate, labor costs, business spending, the prime rate, inventory outstanding bank loans, and inventory book value. 

A wide variety of swap contracts have been traded in the market. Although six-month LIBOR is the most common reference rate for the floating-leg of a swap making semiannual payments, for example, three-month LIBOR also has been used, as well as the prime rate (for dollar swaps), the one-month commercial paper rate, the Treasury bill rate, the municipal bond rate (again, for dollar swaps), and others. 

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