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IOSR Journal of Business and Management (IOSR-JBM) ISSN: 2278-487X.
IOSR Journal of Business and Management (IOSR-JBM) ISSN: 2278-487X.

... with visible hands to promote increase in the level of investment in the different sectors of the economy. For example agriculture, manufacturing and tourism sectors were accorded priority, and banks were directed to charge preferential interest rate to small-scale industry. Since 1986 the inception ...
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Islamic Private Equity,Derivatives and Structured Products Investment

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Costs and Rate of Return from Off-Shore Wind Farms

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Mr. Raharjo Adisusanto, President Director, SMF, Indonesia

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Common clauses and stipulations in loan agreements

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... 6. How should the costs of issuing bonds be accounted for and classified in the financial statements? 7. Differentiate between a fixed-rate mortgage and a variable-rate ...
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Money Adviser Pack Update – Summary of main changes

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Setting aside the debate on when the exact date of an interest rate

... sustained strong performance as bond prices rise.  The U.S. Barclays Aggregate Index has  delivered an annualized return of nearly 8% over that time span, with only a few short periods  of mild negative returns, conditioning investors to expect strong consistent positive returns in  fixed income.  M ...
Chapter 9
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... c. A zero-cost collar consists of buying a cap on LIBOR and selling a floor on LIBOR with the same premiums. Using a 3-year maturity for the data provided, buying a cap at a 6% strike for 29 basis points and selling a floor at a 2% strike for 31 basis points produces a net receipt of 2 basis points ...
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Understanding the Term Structure of Interest Rates

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... the prepayment may leads to deployment of funds at a lower rate.  Reinvestment Risk: The reinvestment risk is the risk of deploying the intermediate cash flows from an asset at a lower rate resulting in lesser income. Liquidity Management The Structural Liquidity Statement is prepared on a daily ba ...
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... differences between groups that experienced worry and those who felt more secure in their ability to manage their monthly costs concerning the principal and interest: Contrary to expectations, those who had taken a lower share of ARMs were statistically significantly more worried than those with a h ...
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Inflation and the Housing Market

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... $309,500, indicating that Massachusetts residents shopping for a home can currently get a deal and pay below market value. Monthly 30-year mortgage payments based on the median price would also be significantly cheaper than the median rent in the state, at $1,460 versus $2,300, respectively. First-t ...
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November 2005 Course FM/2 Examination 1. An insurance
November 2005 Course FM/2 Examination 1. An insurance

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Ch - Pearson Canada

< 1 ... 13 14 15 16 17 18 19 20 21 ... 37 >

Adjustable-rate mortgage

A variable-rate mortgage, adjustable-rate mortgage (ARM), or tracker mortgage is a mortgage loan with the interest rate on the note periodically adjusted based on an index which reflects the cost to the lender of borrowing on the credit markets. The loan may be offered at the lender's standard variable rate/base rate. There may be a direct and legally defined link to the underlying index, but where the lender offers no specific link to the underlying market or index the rate can be changed at the lender's discretion. The term ""variable-rate mortgage"" is most common outside the United States, whilst in the United States, ""adjustable-rate mortgage"" is most common, and implies a mortgage regulated by the Federal government, with caps on charges. In many countries, adjustable rate mortgages are the norm, and in such places, may simply be referred to as mortgages.Among the most common indices are the rates on 1-year constant-maturity Treasury (CMT) securities, the Cost of Funds Index (COFI), and the London Interbank Offered Rate (LIBOR). A few lenders use their own cost of funds as an index, rather than using other indices. This is done to ensure a steady margin for the lender, whose own cost of funding will usually be related to the index. Consequently, payments made by the borrower may change over time with the changing interest rate (alternatively, the term of the loan may change). This is distinct from the graduated payment mortgage, which offers changing payment amounts but a fixed interest rate. Other forms of mortgage loan include the interest-only mortgage, the fixed-rate mortgage, the negative amortization mortgage, and the balloon payment mortgage. Adjustable rates transfer part of the interest rate risk from the lender to the borrower. They can be used where unpredictable interest rates make fixed rate loans difficult to obtain. The borrower benefits if the interest rate falls but loses if the interest rate increases. The borrower benefits from reduced margins to the underlying cost of borrowing compared to fixed or capped rate mortgages.
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