Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Reasons for Different Interest Rate
Interest rates may differ in different market and market segment since:
i) Size of the loan: Deposits above specific amounts into the bank might attract higher interest rates rather than smaller deposits. Therefore, large borrowers would be charged higher interest rates than small borrowers.
ii) Risks: Higher risk borrowers should pay higher rates on their borrowing to compensate lenders for greater risks included.
iii) The requirement to make a profit in re-lending: as like banks borrow for depositors and charge higher interest or like profit margin whenever they lend to borrowers.
iv) Duration of the lending : The L.T. loans will receive a higher rate of interest than shorter term loans because of the maturity risk premium.
v) International interest rates: This varies from one country to other because of differing rates of inflation and foreign currency exchange rates and government policies on interest rates.
vi) Different kinds of financial assets: Building societies should offer higher yields to depositors to attract those using bonds that have high rate of return.
The Genesis operations management team, nearing completion of its agreement with Sensible Essentials, was asked by senior management to present a capital plan for the operating exp
1. Describe the similarities and differences in between an ordinary annuity, an annuity due, and perpetuity. Provide a methodical answer, including examples to demonstrate your po
Internal finance can avoid the agency costs of debt and equity finance. In practice it is the most important source of funding. (a) Discuss potential problems of internal finan
If you inherited $ 45,000 today and invested all of it in a security that paid a 7 percent rate of return, how much would you have in 25 years?
Prepare Journal and Adjusting Entries I need assignment help on topic Prepare Journal and Adjusting Entries. Can you please suggest me the answer. The following two events o
The average of the industry current ratio was 1.86 for 2004, 0.86 for 2005, and 0.87 for 2006. Lenovo had higher current ratio than the industry average in 2004. At that time, thei
Capital Corporation, which has a target capital structure of 40 percent debt and 60 percent common equity, is evaluating an expansion project with an 8.5 percent IRR. The project c
Significance of Investment Decisions a) Such type of decisions is importance since they will influence the company's size or like fixed assets, retained and sales earnings.
Valuing Preferred Stock Gest, Inc has an issue of preferred stock outstanding that pays a $4.50 dividend every year in perpetuity. If this issue currently sells for for $79.85 per
Interpolation method Consequently, r denotes required rate of return Consequently, r = 14 percent + (15 percent - 14 percent) x 253 .646 /253 .646 + 5.375
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd