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Is the debt rate fixed on federal debt? I can’t find much info on this. Ie if the fed funds rate doubles what’s the impact on the interest rate payments the go
by cavisne 4y ago
Is the debt rate fixed on federal debt? I can’t find much info on this.
Ie if the fed funds rate doubles what’s the impact on the interest rate payments the government makes.
- drexlspivey 4y agoYes the bond coupon payments are fixed, only the newly issued debt will be affected.
- cavisne 4y agoFixed over what time period? I think the interest paid is public knowledge, im wondering if the breakdown of rates/terms is known. What I'm curious about is what it would look like if interest rates went to 10% in terms of the interest payments (as loans mature and rollover etc)
- bombcar 4y agoApparently much of the debt is in short-term bonds (which is expected, since the interest rates were low why would you want long term bonds?).
- gvhst 4y agoMost US Gov debt is fixed rate debt, however the government issues new debt all the time, which is issued at a yield that is set by a Dutch Auction [0] [0] - https://home.treasury.gov/services/treasury-auctions https://home.treasury.gov/services/treasury-auctions