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.
Question: A non-zero coupon bond carries a coupon rate of 8 percent and has 9 years until maturity. It sells at a yield to maturity of 6 percent. The par value of the bond is
Determine the amount you would be willing to pay for a $1,000 par value bond paying $80 interest each year (annual) and maturing in 12 years, assuming you wanted to earn a 9% rate
Application of Discriminant Analysis Application of Discriminant Analysis to the Selection of Applicants, Discriminative analysis is a statistical model such can be used to ac
How is the channelling of funds from savers to spenders very important? The channelling of funds by savers to spenders is very significant for two purposes: • One, lender-sa
Basic EOQ Model The basic inventory decision model is Economic Order Quantity or called EOQ model. This model is specified via the following equation as: Whereas:Q is
You are asked to select three variables for a sensitivity analysis of weighted average cost of capital, what would you choose and why? Weighted average cost of capital is th
Characteristics of Sole Proprietorship A. It caters for customers' personal attention B. Accounts do not must be audited C. Limited to such finances like: F
From the above case shareholders are very worried that apple is having too much cash,discuss six reasons why shareholders are so worried
What are the financial intermediaries? Financial Intermediaries: a. Mutual funds b. Pension funds c. Life insurance companies d. Banks
Cash and Marketable Securities Management The management of marketable and cash securities is single of the key areas of working capital management. Because cash and marketabl
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