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Interest rates are almost always quoted in the annualized rate (eg. APR)
by Areading314 6y ago
Interest rates are almost always quoted in the annualized rate (eg. APR)
- cperciva 6y agoSure, but that's not necessarily a useful way of looking at the overnight rate in this case. Annualized interest rates are useful when you're looking at the value of an investment changing over time; but in this case the nature of the investment is changing -- because the critical property "can be delivered to close a contract today" is satisfied by today-lira but is not satisfied by tomorrow-lira.
- phyalow 6y agoUh, all interest rates are quoted annualised, thats to make them directly comparable... to get the notional change just divide it by (365/tenor). Your other points are flatly nonsensical.