The rate will be based on the average of the previous quarter's 91 - day Treasury
Bill auction rate plus a margin of 8 %.
Not exact matches
New issues of short - term Treasury
bills have been issued with a zero interest
rate (though the most recent
auction produced mildly positive interest
rates).
A floating
rate auction is the same as a treasury
auction except that the interest payments are tied to 3 - month treasury
bills.
Even with the
rate cut view for the longer run maintained by the market, there were no takers for 12 - month treasury
bills in the latest MTB
auction held on May 28, 2014.
(The interest
rates on variable
rate loans also change each July 1, based on the last 91 - day T -
bill auction in May.
These projections indicate what the student loan interest
rates would be if they were based on the most recent 91 - day T -
Bill auction, as opposed to the last 91 - day T -
Bill auction in May.
The latest
auctions put the
rate of 4 - week T -
bill at 4.847 %, 13 - week 2.919 %, and 26 - week 4.098 %, again not as desirable as online savings accounts at least for now.
For example, if the FOMC has increased the fund
rate by 25 basic points at each of its last three meetings and there is one more FOMC meeting before the last 91 - day T -
Bill auction in May, one can expect education loan interest
rates to be about 25 basis points higher than the projections listed above.
The following
rates are updated automatically by a program that retrieves the latest appropriate Treasury
bill auction data from the US Treasury web site.
Maximum
rate of 18.00 % Variable APR *** The variable APR is subject to change quarterly and is based on the first 6 - month Treasury
Bill Auction held each quarter which establishes the index.
In 2013, the government enacted a student loan
bill that tied federal loan interest
rates to the 10 year Treasury note, and as Chopra explains in his post, a bond
auction next month will determine the interest
rates for federal student loans.
The Weekly 6 - Month T -
Bill (
Auction High) is the discount rate for the 26 - week Treasury Bill bought at original issue, at the most recent auction of U.S. Treasury
Auction High) is the discount
rate for the 26 - week Treasury
Bill bought at original issue, at the most recent
auction of U.S. Treasury
auction of U.S. Treasury
bills.
In today's environment, zero percent is the going
rate for T -
bill, whether purchased at
auction or in the secondary market.
Federal student loans made between July 1, 1998, and June 30, 2006, have variable interest
rates that change annually on July 1, according to a formula set by Congress that is based on the results of the latest Treasury
Bill (T -
Bill)
auction in May.
TBRd = the Treasury
Bill Return on any S&P GSCI Business Day, d = [1 / (1-91/360 * TBARd - 1) 1/91 -1, where TBARd - 1 = the 91 - day discount
rate for U.S. Treasury
Bills, as reported by the U.S. Department of the Treasury's Treasury Direct on the most recent of the weekly
auction dates prior to such S&P GSCI Business Day, d.
Interest payments rise and fall based on discount
rates in
auctions of 13 - week Treasury
bills.
The weekly average
auction rate of the three - month Treasury
bill stated as the bond equivalent yield.
Treasury FRNs will be indexed to the most recent 13 - week Treasury
bill auction High
Rate prior to the lockout period, which is the highest accepted discount rate in a Treasury bill auct
Rate prior to the lockout period, which is the highest accepted discount
rate in a Treasury bill auct
rate in a Treasury
bill auction.