Layer 1 network and Par yield: Difference between pages

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imported>Doug Williamson
(Create page - source - Binace Academy - https://academy.binance.com/en/articles/what-is-layer-1-in-blockchain)
 
imported>Doug Williamson
(Add 'paying'.)
 
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''Blockchain.''
Today’s market yield on a coupon paying bond trading at par and redeemable at par
= the fixed coupon rate payable on such a ‘par bond’.


(L1).


A layer 1 blockchain network is one that can validate and finalise transactions itself, without the need for any other network.
'''Example'''


Examples include Bitcoin and Etherium.
The par yield for the maturity 0-3 periods is 1.90% per period.
 
This means that a deposit of £1,000,000 at Time 0 periods would return:
 
*Interest at a rate of 1.90% per period on the original £1,000,000, at Times 1, 2 and 3 periods, and
*The principal of £1,000,000 at Time 3 periods
 
 
The interest payments will be £1,000,000 x 0.019 = £19,000 per period
 
The total repaid at Time 3 periods will be: principal £1,000,000 + £19,000 interest = £1,019,000.
 
 
An application of par yields is the pricing of new coupon paying bonds.
 
 
The par yield is known as the Par rate, Swap rate or Swap yield.




== See also ==
== See also ==
* [[Altcoin]]
* [[Bond]]
* [[Bitcoin]]
* [[Bootstrap]]
* [[Blockchain]]
* [[Coupon bond]]
* [[Blockchain Governance Initiative Network]] (BGIN)
* [[Forward yield]]
* [[Centralised finance]]
* [[Market yield]]
* [[Coin]]
* [[Par]]
* [[Crypto-assets]]
* [[Swap spread]]
* [[Cryptocurrency]]
* [[Yield curve]]
* [[Data]]
* [[Zero coupon yield]]
* [[Database]]
* [[Decentralised finance]]  (DeFi)
* [[Digital asset]]
* [[Digital currency]]
* [[Distributed ledger]]
* [[Ether]]
* [[Fintech]]
* [[Layer 2 network]]
* [[Non-fungible token]]
* [[Payments and payment systems]]
* [[Platform]]
* [[Ripple payment protocol]]
* [[Smart contract]]
* [[Stablecoin]]
* [[SWIFT gpi]]
* [[Token]]
* [[TradFi]]
 
[[Category:Technology]]

Revision as of 12:36, 11 November 2015

Today’s market yield on a coupon paying bond trading at par and redeemable at par

= the fixed coupon rate payable on such a ‘par bond’.


Example

The par yield for the maturity 0-3 periods is 1.90% per period.

This means that a deposit of £1,000,000 at Time 0 periods would return:

  • Interest at a rate of 1.90% per period on the original £1,000,000, at Times 1, 2 and 3 periods, and
  • The principal of £1,000,000 at Time 3 periods


The interest payments will be £1,000,000 x 0.019 = £19,000 per period

The total repaid at Time 3 periods will be: principal £1,000,000 + £19,000 interest = £1,019,000.


An application of par yields is the pricing of new coupon paying bonds.


The par yield is known as the Par rate, Swap rate or Swap yield.


See also