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How to determine the interest rate of national debt
National debt is a creditor-debtor relationship formed by the state on the basis of its credit and in accordance with the general principles of debt by raising funds from the society. It has the highest credit rating and is recognized as the safest investment tool. So, how to determine the interest rate of national debt?

The essence of treasury bond futures is interest rate futures, which is to deal with the risk of interest rate changes. The purpose of national debt is only the carrier of interest rate. The interest rate of national debt is generally fixed, which refers to the coupon rate, not the actual rate of return of the holder. The actual rate of return of investors will be different because of the different market interest rates in different periods.

Income = principal × annual interest rate× year

For example, if you buy 60,000 yuan of three-year treasury bonds with an annualized rate of return of 5.0%, then your income after three years is

60000×5.0%×3=9000 yuan, plus the principal, the final return for you is 60000 +9000=69000 yuan.

National debt is a bond issued by the state, a government bond issued by the central government to raise financial funds, and a debt certificate issued by the central government to investors, which promises to pay interest and repay the principal within a certain period of time. Because the issuer of national debt is the country, it has the highest credit. The interest rate of national debt is set according to the above method.