Define the term contractual savings depository institutions, Finance Basics

Assignment Help:

Define the term contractual savings depository institutions.

Contractual savings institutions:

Contractual savings institutions obtain funds at periodic intervals onto a contractual origin. The industry is categorized in two main groups as: insurance companies and pension funds. There liquidity of their assets is less significant than for depository institutions since they can predict along with reasonable accuracy the future payments because of their customers. Like a consequence they invest their funds within long-term securities (as like corporate bonds, mortgages and stocks).


Related Discussions:- Define the term contractual savings depository institutions

Profitability index or p.i., Profitability Index or P.I. P.I. (benefit...

Profitability Index or P.I. P.I. (benefit-cost ratio) = Present value of inflows / Present value of cash outlay Whether P.I. is greater than 1.0, invest and whereas less th

Example of theoretical value, Example of Theoretical Value As a result...

Example of Theoretical Value As a result of the purchase of an asset, the income stream will rise by of £1,000 per annum for 25 years.  By assuming a discount rate of 20 perce

Advantages of bonus matter, Advantages of Bonus Matter a) Tax advanta...

Advantages of Bonus Matter a) Tax advantages         Shareholders can sell new shares, and create cash in form of capital gains such is tax exempt unlike cash dividends wh

After tax return, Bill Smith, a manager of a restaurant/bar in Los Angele, ...

Bill Smith, a manager of a restaurant/bar in Los Angele, is in the 25% marginal tax bracket and pays additional 5% in taxes to the state of California. Bill has 20,000 invested in

Choose Variables for a sensitivity analysis, You are asked to select three ...

You are asked to select three variables for a sensitivity analysis of weighted average cost of capital, what would you choose and why? Weighted average cost of capital is th

Executive share options plans, Executive Share Options Plans In a shar...

Executive Share Options Plans In a share option format, selected staff can be provided a number of share alternatives, each of which that provides the holder the right after a

Solutions to agency problem, Solutions to agency problem The bondholde...

Solutions to agency problem The bondholders might receive the following procedures to protect themselves from the process of the shareholders that might dilute the value of th

Example of net present value method, Example of Net Present Value Method ...

Example of Net Present Value Method Cost of investment = 100,000/=, Interest rate = 10percent, Inflows year 1 = 80,000/= Year 2 = 50,000/= NPV   = 80,000 / 1.1 + 5

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd