# Questions tagged [interest]

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### Interest rate implied probability of default

Is there an equation or rule of thumb to determine the probility of default for a loan with a specific interest rate? Let's say, a bank offers a company a loan with an interest rate of 6%, by which ...
• 226
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### OIS, Fed Funds Rate and Working

I'm a bit confused about OIS. Is OIS the overnight interest rate or is it a swap. If OIS is the rate at which banks lend overnight, where does the swap come in? Don't they borrow at a fixed rate? ...
• 71
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### Variable Loan Interest Question

I have been attempting this question a few times over the past few days but can't seem to make any headway on it. Any help would be greatly appreciated. A loan of €L was to be repaid over a twenty-...
1 vote
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### How is the spread between the US-10 T-bond and the Fed funds rate determined?

In 2015 the Fed funds rate was 0.24%, while the US Treaury 10-year government bond was 2.24%. How is the spread determined? Is there a formula to determine the spread of the US-10 T-bond and the Fed ...
• 226
The relationship between annual discrete and continuous compounding interest rates is given as: $$1+r_d = e^{r_c}$$ My question is what are the properties of the difference between $r_d$ and $r_c$? ...