Fair market value and Semi-annual basis: Difference between pages

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''Financial reporting - accounting practices.''
The quotation of a rate of return, or a cost, on the basis of a nominal annual rate for compounding twice per year.


The price that would be agreed between market participants in an orderly transaction at the valuation date.


Also known as Fair value.
<span style="color:#4B0082">'''Example'''</span>
 
'''Q.'''
 
A rate of return - quoted as an annual effective rate - is 4.04%.
 
What is this same rate of return quoted on a semi-annual basis?
 
'''A.'''
 
The same rate of return quoted on a semi-annual basis is:
 
(1.0404<sup>(1/2)</sup> -1) x 2
 
= 4.00%.
 
 
It is sometimes written as ''semiannual'', without the hyphen.




== See also ==
== See also ==
* [[Fair market]]
* [[Capital market]]
* [[Fair value]]
* [[Semi-annual rate]]
* [[Financial reporting]]
*[[Nominal annual rate]]
* [[Market participant]]
*[[Rate of return]]
* [[Market value]]


[[Category:Accounting,_tax_and_regulation]]
[[Category:Long_term_funding]]
[[Category:The_business_context]]
[[Category:Cash_management]]
[[Category:Corporate_finance]]
[[Category:Financial_products_and_markets]]

Latest revision as of 13:58, 29 October 2016

The quotation of a rate of return, or a cost, on the basis of a nominal annual rate for compounding twice per year.


Example

Q.

A rate of return - quoted as an annual effective rate - is 4.04%.

What is this same rate of return quoted on a semi-annual basis?

A.

The same rate of return quoted on a semi-annual basis is:

(1.0404(1/2) -1) x 2

= 4.00%.


It is sometimes written as semiannual, without the hyphen.


See also