Forward yield and Franchise: Difference between pages

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imported>Doug Williamson
(Link with Periodic yield page.)
 
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The rate of return in the market today for a notional or actual deposit or borrowing:
1. ''Banking.''
#Starting at a fixed future date; and
#Ending on a later fixed future date.


In banking, a bank's franchise is a combination of its reputation, relationships, skills and markets.


'''Example'''


The forward yield for the maturity 2-3 periods is 3% per period.
2. ''Business format franchising.''


This means that a deposit of £1,000,000 at Time 2 periods would return:
A business format franchise agreement is a licence granted by the owner of a brand, business system and model to a 'franchisee'.


£1,000,000 x 1.03
The franchisee runs the business under the franchised brand, using the franchised business system and model.


= £1,030,000 at Time 3 periods.
Initial and ongoing fees are paid to the owner of the brand and business system.




A common application of forward yields is the pricing of forward rate agreements.
3.


An authorisation from a government or company to carry out specified commercial activities for a given period in a particular region or location.




The forward yield is also known as the [[Forward rate]] or (sometimes) the Forward forward rate. 
== See also ==
 
* [[Bank]]
(The [[Forward forward rate]] is technically slightly different.)
* [[Brand]]
 
* [[Footprint]]
 
* [[Franchise viability risk]]
'''Conversion'''
* [[ILAA]]
 
* [[ILAAP]]
If we know the forward yield, we can calculate both the [[zero coupon yield]] and the [[par yield]] for the same maturities and risk class.
* [[Liquidity]]
 
* [[Prudential Regulation Authority]]
 
* [[Reputational risk]]


== See also ==
[[Category:Accounting,_tax_and_regulation]]
* [[Yield curve]]
[[Category:The_business_context]]
* [[Par yield]]
[[Category:Corporate_finance]]
* [[Zero coupon yield]]
[[Category:Investment]]
* [[Forward rate agreement]]
[[Category:Ethics]]
* [[Periodic yield]]
[[Category:Identify_and_assess_risks]]
[[Category:Manage_risks]]
[[Category:Risk_frameworks]]
[[Category:Cash_management]]
[[Category:Financial_products_and_markets]]
[[Category:Liquidity_management]]

Revision as of 22:35, 14 March 2021

1. Banking.

In banking, a bank's franchise is a combination of its reputation, relationships, skills and markets.


2. Business format franchising.

A business format franchise agreement is a licence granted by the owner of a brand, business system and model to a 'franchisee'.

The franchisee runs the business under the franchised brand, using the franchised business system and model.

Initial and ongoing fees are paid to the owner of the brand and business system.


3.

An authorisation from a government or company to carry out specified commercial activities for a given period in a particular region or location.


See also

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