The price paid for using money is called
Money that is paid for the use of money is called interest. When you keep your money in a bank savings account, the bank credits your account with interest. The highest price paid recently at auction for an American painter was a Mark Rothko painting sold for $72,840,000 on May 15, 2007. The painting is 'White Center (Yellow, Pink … and Lavendar on Rose)'.  The highest price to date was 104 million dollars in 2004 for Picasso's Garcon garçon a à, la pipe painted. in 1905 Not only that, but someone paid you $750 extra per option just for your time and effort to buy your stock at your price. Since options trade in 100 multiples, the option is quoted as $7.50. When it's time to collect the money, you will receive $750 (100 shares x $7.50). The highest price paid recently at auction for an American painter was a Mark Rothko painting sold for $72,840,000 on May 15, 2007. The painting is 'White Center (Yellow, Pink … and Lavendar on Rose)'. Evidently, the higher the price of the bond, the lower the rate of interest, and vice versa. Someone paying $105 today for a promise of $110 a year from now is paying an interest rate of 4.8% (=[$110-$105]/$105), a lower interest rate than the 10% interest paid by someone who pays $100 for that same bond. The price of a bond is what someone pays today for the promise of future payment. If one person offers to pay $110 a year from now, and someone else buys that bond for $100 today, the price of the bond is $100. Interest rates and bond prices. The price of a bond is what someone pays today for the promise of future payment. If one person offers to pay $110 a year from now, and someone else buys that bond for $100 today, the price of the bond is $100. That's a good thing because $80 was the price you wanted to acquire it, and $10 cheaper than where it had been trading. Not only that, but someone paid you $750 extra per option just for your time and effort to buy your stock at your price. Since options trade in 100 multiples, the option is quoted as $7.50. The price of a bond is what someone pays today for the promise of future payment. If one person offers to pay $110 a year from now, and someone else buys that bond for $100 today, the price of the bond is $100. (That is, in economic terms, the bond price and the principal refer to the same thing.). This is called the speculative motive. Suppose that interest rates fluctuate. At a two percent rate of interest, you would get $1,020 in a year's time in exchange for $1,000 in cash now (i.e. by buying now for $1,000 a bond that pays $1,020 in a year, which is the same thing as lending $1,000 at two percent interest).
Interest