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Applicable Federal Rates

L1: Applicable Federal RatesAny speculation as to when AFRs will begin to increase?2003-06-30 10:24, By: Chuck, IP: [127.0.0.1]
L2: Applicable Federal RatesApplicable Federal Rates (AFRs) will increase when other interest rates increase – any other response is pure speculation.2003-06-30 10:27, By: Gfw, IP: [127.0.0.1]

L2: Applicable Federal RatesHello Chuck:
I have no idea either; however, the MT/AFR is a blend of outstanding US Treasury securities with maturities between 3 and 9 years. As a result, I tend to watch what is happening to the 5 year note relative to the previous month-end; multiple the change in the note by 1.2 and add it to the current month’s 120% MT/AFR & you will get real close to the next months 120% of MT/AFR. At a minimum you will get a directional indicator & most of the time you will be within 10 – 15 bp.
TheBadger
wjstecker@wispertel.net
2003-06-30 10:37, By: TheBadger, IP: [127.0.0.1]

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