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What is floating rate of interest, and what is meant by liquidity?

April 26, 2017Business Finance floating Investing liquidity meant rate

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What is floating rate of interest, and what is meant by liquidity?

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Liquidity in investment terms is the ease of moving money such as in and out of an investment. It’s quicker to cash a government bond (just go to a bank) than to get money back selling a house. Floating point interest is a math problem involving rounding. Let’s say your real interest is $1.015. There is no such thing as a half cent in the real world. It will get rounded to either $1.02 or $1.01 depending on how the half cent is dealt with by law and or the person working out the problem.