"Real interest-rate levels are very attractive right now."

As a result, the price of that strip will rise as the payment date approaches, assuming no change in interest-rate levels.

The dollar losses on short-term securities are much less than on long-term ones for the same change in interest-rate levels.

The discount rate, which sets a floor under German money market rates and effectively dictates interest-rate levels elsewhere on the Continent, stands at 3.5 percent.

There seems now to be a lag of about two years between a major change of interest-rate levels and investment rates.

It takes a lot to derail the American economy, particularly at these interest-rate levels and inflation levels.

But you get to a point where a fair amount of bad news has already been built into interest-rate levels.

It also effectively dictates interest-rate levels elsewhere in Europe.

Although refinancing picked up modestly during the spring and summer - accounting for about 25 percent of the business - lenders said they did not expect a larger demand at the current interest-rate level.

The market could go up to 6,400 at current interest-rate levels.