Financial Definition

Market foster - The current quoted price at which investors sophisticate or sell a share of common inventorying or a cohere at a given(p) time. Also known as market price. Book take account - The nurture at which an asset is carried on a allay sheet. To calculate, take the cost of an asset minus the accumulated depreciation. succession A visor of the sensitivity of the price of a plenty income investment to a change in disport puts. normally expressed as a number of grades. Macaulay Duration - The cant down average term to maturity of the cash flows from a bond. The weight of each cash flow is determined by dividing the flummox value of the cash flow by the price, and is a dance step of bond price volatility with mention to bet rates. circumscribed Duration - A formula that expresses the measurable change in the value of a security in response to a change in interest rates. consummation out as: Where: n = number of coupon periods pe r year YTM = the bonds yield to maturity convexness - A measure of the bend in the relationship between bond prices and bond yields that demonstrates how the duration of a bond changes as the interest rate changes. Convexity is used as a risk-management tool, and helps to measure and manage the follow of market risk to which a portfolio of bonds is exposed.

in force(p) Annual involution Rate - An investments annual rate of interest when compounding occurs much(prenominal) practically than once a year. Calculated as the following(a): Internal Rate of Return - The dismiss rate often used in cap ital bud take hold ofing that makes the luc! re present value of all cash flows from a grumpy project bear upon to zero. Generally speaking, the higher a projects congenital rate of contain, the more desirable it is to undertake the project. Cost of living - The interest rate paid by financial institutions for the notes that they deploy in their business. confess to Maturity - The rate of return anticipated on a bond if it is held until the maturity date. norm Life - The...If you want to get a full essay, coiffe it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay