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How is present value influenced by a change in the discount rate?Present value is oppositely related to the discount rate. Alternatively, present value moves in the reverse direction of the discount rate. As the discount rate increases, present value decreases. If the discount rate decreases, present value gets increases.
A mortgage, is sold to the SPV at the discretion of the bank to securitize it into a mortgage backed security, that is, the mortgage is said to
Long Term Solvency or Liquidity Ratio's DE: The Debt Equity ratio exhibits the relation that exists between debt and proprietor's fund and is considered a very im
As liberalization is gathering momentum, corporate treasures and merchant bankers are in the process of devising new products to suit the needs of investors and c
Problems in primary market?
Accept-Reject Rule: The decision rule is to accept the project if the computed payback period is less than the standard. If not, reject it. While ranking the projects, projec
Accounting Framework - Convention of Consistency This doctrine denotes that accounting rules, practices & conventions should be continuously observed and applied that implies
Employee Benefit Plan - Compensation arrangement, usually in writing, used by employers in addition to wages or salary. Some plans like group term life insurance, medical insuranc
Foreign Exchange Market Equilibrium: We say that the foreign exchange market is in equilibrium when deposits of all currencies oer the same expected rate of return (when retu
Explain what a bond is and discuss its nature as a "fixed income" security.Discuss important terms in relation to bonds as the "price", "maturity", "current yield", "yield to matu
DQ #1: Discuss the challenges of VaR approaches in valuing risk. How does portfolio risk assessment differ from a single asset’s risk assessment? How do managers typically load ba
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