There’s no free lunch in this world. We pay for every product or service we consume, either directly or indirectly. For instance, you pay a parking fee for the time you use the parking space. When you send a courier, you pay for the weight of the courier and the distance it needs to travel to reach the recipient. When you borrow money from someone, the lender charges you a fee for the amount and time you borrow. This fee expressed as a percentage of the principal amount borrowed, is the Interest Rate usually specified for a year.
Companies, banks and government bodies raise debt funds from the public and deploy this capital in some aspects of their business. They pay a fee for such borrowings. They issue bonds to
Read more
