Multibank platform and Periodic yield: Difference between pages
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A rate of return - or cost of borrowing - expressed as the proportion by which the amount at the end of the period exceeds the amount at the start. | |||
===Example=== | |||
GBP 1 million is borrowed. | |||
GBP 1.03 million is repayable at the end of the period. | |||
: | The periodic yield (r) is: | ||
(End amount / start amount) - 1 | |||
= (1.03 / 1) - 1 | |||
= 0.03 | |||
= 3% | |||
==See also== | |||
*[[Annual effective rate]] | |||
*[[Discount rate]] | |||
*[[Periodic discount rate]] | |||
*[[Yield]] | |||
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Revision as of 10:31, 25 October 2015
A rate of return - or cost of borrowing - expressed as the proportion by which the amount at the end of the period exceeds the amount at the start.
Example
GBP 1 million is borrowed. GBP 1.03 million is repayable at the end of the period.
The periodic yield (r) is:
(End amount / start amount) - 1
= (1.03 / 1) - 1
= 0.03
= 3%
