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.
Describe the duties of the financial manager in a business firm? Financial managers calculate the firm's performance, define what the financial consequences will be if the firm
Maghrabi Enclosure follows a moderate current asset investment policy, but it is considering whether to shift to a different strategy. The firm''s annual sales are $500,000; its f
flotation cost of 15% for bond, bonds 8%,$1,000 par value, 16 year maturity
Question: Suppose that a security is presently selling for a price of $65, the nominal interest rate is 8%, and the security volatility is 0.15. a) Determine Delta of a Euro
Development of Lease Finance in Middle Asia Reasons Why Lease Finance Is Not Well Developed In Middle Asia 1. Lease charges are generally prohibitive that is the cost
Important Factors for Expectation Theory The following circumstances are essential for the expectation theory to hold. i) Ideal capital markets exists where there are many
Agency Theory The agency problem between managers and shareholders can be resolved via paying high dividends. If retention is low, managers are necessary to increase additiona
Financial Management On the other hand a financial manager has to meet the company's strategic or long term needs as long term investment are helpful to the company since:
Significant Features of Partnership 1) The capital is contributed by the partners and no appeal is made to the public. 2) Like the sole proprietorship, a partnership has a l
Capital Structure Ratio Gearing/Leverage/Capital Structure Ratio The ratio signifies the extent whether the firm has borrowed fixed charge capital to finance the
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