Blended Rate: A blended rate is a financial tool used to combine different kinds of interest rates into one fixed rate. This approach offers a more accurate representation of the overall cost of an investment and can be advantageous when managing long-term portfolios. It enables investors to gain higher returns from investments by combining lower short-term rates with higher long-term rates, without sacrificing their liquidity needs. Blended rates offer flexibility, transparency, and control over investments – allowing investors to make informed decisions about their financial future.