Moreover, future moves by the U.S. Federal Reserve to ease monetary policy further would again reduce the effective interest rate spread between Japan and the United States, limiting the effect of the Bank of Japan's actions.
(In short, the higher the price paid for a bond, the lower the effective interest rate).
But if your overdraft is smaller, your effective interest rate is far higher".
The effective interest rate the government should have charged would have been infinity.
And a rise in the effective interest rate is the last thing this economy needs.
Doves are happy that effective interest rates are nearer to zero.
Buying up mortgage-backed securities helps push up their price and drives down the effective interest rate, or yield.
The yield, or effective interest rate, on 10-year Italian bonds reached a record 7.5% on Wednesday.
Partly because costs are so high, effective interest rates are often significantly steeper than those at traditional banks.
The bond will yield about 0.6% more than a British government 40-year gilt, suggesting an effective interest rate of 3.85% over the lifetime of the loan.
The yield, or effective interest rate, on Greek 10-year bonds rose seven basis points to 11.36 percent, according to Bloomberg data.
