Perpetuity factor and Pricing grid: Difference between pages

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''Financial maths.''
A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower.


A perpetuity factor is the fraction 1/r, used when evaluating a fixed perpetuity.
Also known as a 'ratchet'.
 
Using this simple formula assumes a constant periodic cost of capital (r) for all periods from now to infinity.
 
 
Sometimes known as the Perpetuity formula.




== See also ==
== See also ==
* [[Annuity factor]]
* [[Credit rating]]
* [[Perpetuity]]
* [[Ratings trigger]]
* [[Rating grid]]


[[Category:Corporate_finance]]
[[Category:Treasury_operations_infrastructure]]
[[Category:Long_term_funding]]

Revision as of 16:34, 25 July 2015

A clause in a loan document which links the pricing of the borrowing to the credit rating of the borrower.

Also known as a 'ratchet'.


See also