Compounding factor and Association for Financial Markets in Europe: Difference between pages

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(CF).  
''Wholesale financial markets - associations & federations.''


A number greater than one which we multiply a present value by, to work out its [[Future Value]] (FV) as:
(AFME)


FV = CF x present value.
The AFME represents the leading global and European banks and other significant capital market players.


It aims to act as a bridge between market participants and policy makers across Europe.


The periodic Compounding Factor is calculated from the periodic yield as:
''(Source - AFME)''


CF = ( 1 + periodic yield ).


== See also ==
* [[Bridge]]
* [[Capital market]]
* [[Capital Market Union]]  (CMU)
* [[European Banking Federation]]
* [[European Covered Bond Council]]
* [[European Fund and Asset Management Association]]
* [[European Mortgage Federation]]
* [[Financial markets]]
* [[Global Financial Markets Association]]
* [[Global Sustainable Finance Council]]
* [[Institute of International Finance]]
* [[International capital market]]
* [[International Capital Market Association]]
* [[Loan Market Association]]
* [[Market participant]]
* [[Regulation]]
* [[Securities Industry and Financial Markets Association]]
* [[Wholesale]]
* [[World Federation of Exchanges]]


'''Example'''
Annual effective yield (r) = 6%.
Number of years in the total period (n) = 2.


Then:
==External link==


Compounding Factor = ( 1 + r )<sup>n</sup>
*[https://www.afme.eu/About-Us/Introducing-AFME AFME - Who we are and how we work]


= 1.06<sup>2</sup>
[[Category:Accounting,_tax_and_regulation]]
 
[[Category:Financial_products_and_markets]]
= 1.1236.
[[Category:The_business_context]]
 
 
== See also ==
* [[Compounding effect]]
* [[Discount factor]]
* [[Future value]]
* [[Present value]]

Revision as of 19:27, 12 September 2023