Forward yield and Shilling: Difference between pages

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imported>Doug Williamson
(Link with Periodic yield page.)
 
imported>Doug Williamson
(Create page. Sources: Linked pages & ISO - https://www.six-group.com/en/products-services/financial-information/data-standards.html#scrollTo=maintenance-agency)
 
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The rate of return in the market today for a notional or actual deposit or borrowing:
1. ''Currency names - current.''
#Starting at a fixed future date; and
#Ending on a later fixed future date.


Shilling is a generic name for the currencies of Kenya (KES), Somalia (SOS), Tanzania (TZS) and Uganda (UGX).


'''Example'''


The forward yield for the maturity 2-3 periods is 3% per period.
2.  ''Currency names - pounds - historic.''


This means that a deposit of £1,000,000 at Time 2 periods would return:
Historically, before decimalisation, a shilling was 1/20 of a pound.


£1,000,000 x 1.03
For example, the pound sterling (GBP).


= £1,030,000 at Time 3 periods.
A common application of forward yields is the pricing of forward rate agreements.
The forward yield is also known as the [[Forward rate]] or (sometimes) the Forward forward rate. 
(The [[Forward forward rate]] is technically slightly different.)
'''Conversion'''
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.


== See also ==
* [[Bullion]]
* [[Court]]
* [[Dim sum bond]]
* [[Gilts]]
* [[Guinea]]
* [[Pound]]
* [[Seigniorage]]
* [[Sovereign]]
* [[Sovereign debt]]
* [[Sovereign debt crisis]]
* [[Sovereign immunity]]
* [[Sovereign issuance]]
* [[Sovereign risk]]
* [[Sovereign social bond]]
* [[Sovereign wealth fund]]
* [[Sovereignty]]
* [[Sterling]]


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

Revision as of 06:28, 15 September 2022

1. Currency names - current.

Shilling is a generic name for the currencies of Kenya (KES), Somalia (SOS), Tanzania (TZS) and Uganda (UGX).


2. Currency names - pounds - historic.

Historically, before decimalisation, a shilling was 1/20 of a pound.

For example, the pound sterling (GBP).


See also

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