Periodic discount rate and S&P 500: Difference between pages

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imported>Doug Williamson
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A cost of borrowing - or rate of return - expressed as:
''US''.


*The excess of the amount at the end over the amount at the start
1.
*Divided by the amount at the end


An index made up of the common stock (share) prices of 500 large companies actively traded in the US stock markets.


==Example 1==
GBP 1 million is borrowed.


GBP 1.03 million is repayable at the end of the period.  
2.


The 500 companies whose stocks are included in the index.


The periodic discount rate (d) is:


(End amount - start amount) / End amount
== See also ==
* [[Standard & Poor's ]]
*[[FTSE]]
* [[Fortune 500]]
* [[Index numbers]]
* [[Tracker fund]]


= (1.03 - 1) / 1.03
[[Category:Corporate_finance]]
 
= 0.029126
 
= 2.9126%
 
 
==Example 2==
GBP 0.97 million is borrowed or invested
 
GBP 1.00 million is repayable at the end of the period.
 
 
The periodic discount rate (d) is:
 
(End amount - start amount) / End amount
 
= (1.00 - 0.97) /  1.00
 
= 0.030000
 
= 3.0000%
 
 
==See also==
 
*[[Effective annual rate]]
*[[Discount rate]]
*[[Periodic yield]]
*[[Yield]]

Latest revision as of 15:08, 17 August 2021

US.

1.

An index made up of the common stock (share) prices of 500 large companies actively traded in the US stock markets.


2.

The 500 companies whose stocks are included in the index.


See also