Risk taxonomy and Semi-annual basis: Difference between pages

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.

@@ Line 1: / Line 1: @@
-A structure for the classification of risks.
+The quotation of a rate of return, or a cost, on the basis of a nominal annual rate for compounding twice per year.
-For example into business risk and financial risk.
+<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 ==
-* [[Business risk]]
+* [[Capital market]]
-* [[Financial risk]]
+* [[Semi-annual rate]]
+*[[Nominal annual rate]]
+*[[Rate of return]]
-[[Category:Financial_risk_management]]
+[[Category:Long_term_funding]]
-[[Category:Identify_and_assess_risks]]
+[[Category:Cash_management]]