Periodic yield and Special purpose vehicle: Difference between pages

Revision as of 11:22, 12 August 2016

(SPV).

A legal entity established to facilitate a single transaction or purpose.

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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.
+(SPV).
-==Example 1==
+A legal entity established to facilitate a single transaction or purpose.
-GBP 1 million is borrowed.
-GBP 1.03 million is repayable at the end of the period.
+== See also ==
+* [[Asset backed commercial paper]]
+* [[Conduit]]
+* [[Special Purpose Entity]]
+* [[Sponsor]]
+* [[SSPE]]
-The periodic yield (r) is:
+[[Category:Corporate_finance]]
-(End amount / start amount) - 1
-= (1.03 / 1) - 1
-= 0.03
-= 3%
-==Example 2==
-GBP  0.97 million is borrowed.
-GBP 1.00 million is repayable at the end of the period.
-The periodic yield (r) is:
-(End amount / start amount) - 1
-= (1.00 / 0.97) - 1
-= 0.030928
-= 3.0928%
-==See also==
-*[[Annual effective rate]]
-*[[Discount rate]]
-*[[Periodic discount rate]]
-*[[Yield]]