Recourse and Semi-annual rate: Difference between pages

Revision as of 14:52, 19 October 2013

The semi-annual rate is the simple annual interest quotation for compounding twice a year.

For example if the semi-annual rate is quoted as 10%, then the periodic interest accruing is 5% (= 10% x 6/12) per six month period.

A semi-annual rate is an example of a nominal annual rate.

Not to be confused with the annual effective rate, which in this case would be = 1.05² - 1 = 10.25%.

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-A right of redress should a bill of exchange or other debt be dishonoured at its maturity. For example, a claim against an earlier holder of the bill.
+The semi-annual rate is the simple annual interest quotation for compounding twice a year.
+For example if the semi-annual rate is quoted as 10%, then the periodic interest accruing is 5% (= 10% x 6/12) per six month period.
+A semi-annual rate is an example of a nominal annual rate.
+Not to be confused with the ''annual effective'' rate, which in this case would be = 1.05<sup>2</sup> - 1 = 10.25%.
 == See also ==
-* [[Acquirer]]
+* [[Annual effective rate]]
-* [[Bill of exchange]]
+* [[Nominal annual rate]]
-* [[Factoring]]
+* [[Semi-annual basis]]
-* [[Forfaiting]]
+* [[Periodic rate of interest]]
-* [[Non-recourse]]
-* [[Project finance]]
-* [[Recourse finance]]
+[[Category:Debt_Capital_Markets]]
+[[Category:Cash_Management]]
+[[Category:Interest_Rate_Risk]]