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A security (also called a financial instrument) is a claim on the issuer's future income or assets (any financial claim or piece of property that is subject to ownership).An interest rate is the cost of borrowing or the price paid for the rental of funds (usually expressed as a percentage of the rental of $100 per year).Interest rates are important on a number of levels.On a personal level, high

A security (also called a financial instrument) is a claim on the issuer’s future income or
assets (any financial claim or piece of property that is subject to ownership). A bond
is a debt security that promises to make periodic payments for a specified period of
time.1
The bond market is especially important to economic activity because it enables
corporations and governments to borrow money to finance their activities, and because
it is where interest rates are determined. An interest rate is the cost of borrowing or
the price paid for the rental of funds (usually expressed as a percentage of the rental of
$100 per year). Many types of interest rates are found in the economy—mortgage interest rates, car loan rates, and interest rates on many different types of bonds.
Interest rates are important on a number of levels. On a personal level, high