Semi-annual rate and Statement of federal financial accounting standard: Difference between pages

Latest revision as of 13:27, 22 November 2017

(SFFAS).

US government accounting.

Federal financial standard produced by the US Federal Accounting Standards Advisory Board.

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-The semi-annual rate is the simple annual interest quotation for compounding twice a year.
+(SFFAS).
-Coupon rates on bonds paying interest twice per year are generally expressed as semi-annual rates.
+''US government accounting. ''
-This makes rates broadly comparable, while also enabling the amounts of fixed interest coupons to be determined easily.
+Federal financial standard produced by the US Federal Accounting Standards Advisory Board.
-<span style="color:#4B0082">'''Example: Semi-annual rate calculation'''</span>
-For example if the semi-annual rate is quoted as 4%, then the periodic interest accruing is:
-= 4% x 6/12
-= 2% per six month period.
-A semi-annual rate is an example of a nominal annual rate.
-The semi-annual rate is not to be confused with the <i>periodic</i> rate per 6 months, which in this case is 2%.
-Nor should it be confused with the related <i>annual effective</i> rate, which in this case would be:
-= 1.02<sup>2</sup> - 1
-= 4.04%.
 == See also ==
-* [[Effective annual rate]]
+* [[Federal Accounting Standards Advisory Board]]
-* [[Certificate in Treasury Fundamentals]]
-* [[Certificate in Treasury]]
-* [[CertFMM]]
-* [[Nominal annual rate]]
-* [[Semi-annual basis]]
-* [[Periodic rate of interest]]
-* [[Periodic yield]]
-* [[Quarterly rate]]
-[[Category:Long_term_funding]]
+[[Category:Accounting,_tax_and_regulation]]
-[[Category:Manage_risks]]
-[[Category:Cash_management]]