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13 Cards in this Set
- Front
- Back
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Financial Leverage Ratio |
(Interest - Bearing Debt ) /Ordinary Equity |
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Price of a bond formula |
Interest ( FV X Coupon) / (1 + yield)^nprice of |
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Price of a discount security formula |
FV / (1+ yield X time to maturity) |
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Simple interest formula |
PV(1+it) |
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Compound interest formula |
Pv(1+ i/m)^t x m |
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Effective rate of interest formula |
(1 + i/m)^m - 1 |
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When is a bond trading at a discount? |
When coupon < yield Price is below FV |
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When is a bond trading at a premium ? |
When Coupon > yield Price is above fv |
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Is the household sector a DEU or SEU? |
SEU |
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Is the non-financial corporation sector a DEU or SEU? |
DEU |
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Is the general government sector a DEU or SEU? |
Depends on whether running a surplus or deficit budget |
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Is the reest of world sector a DEU or SEU? |
Lender OR SEU |
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Is the financial corporations sector a DEU or SEU? |
Borrower or DEU |
