Copyright

What are the interest rates of long-term margin loans?

Question:

What are the interest rates of long-term margin loans?

Loanable Funds:

It is the amount of loan at which interest rate is charged such that the marginal loans interest rate is low than the unsecured loans, credit card etc.

Answer and Explanation:


The interest rate is determined by the size of loan such that the lower interest rate is charged on higher amount of loan and more interest rate is charged on lesser amount of loan. People who borrow the loan of more than $1 million, the interest rate is charged around 5 percent and in the range of $500000 to $999999, the interest rate is charged around 5.25 percent.


Learn more about this topic:

Loading...
Loanable Funds: Definition & Theory

from Introduction to Business: Homework Help Resource

Chapter 25 / Lesson 29
66K

Related to this Question

Explore our homework questions and answers library