Sentences with phrase «prevailing market interest rates»

When individuals or businesses make decisions about investments, they tend to use the prevailing market interest rates to set the discount rate.

Economists often use the prevailing market interest rates to make inter-temporal decisions of this type.

So the combined effects of the five above points all lead to both dampening the initial NAV (the mutual funds» net asset value) decline, NAV slowly increasing over time (usually back to its original level), and making it so your yield steadily increases back up to prevailing market interest rates over time.

Use cell G10 to input the forecasted change in prevailing market interest rates.

Interest rates on variable rate loans depend on prevailing market interest rates, so the total interest owed will depend upon changes in the broader environment.

This is because book values of assets (and hence equity) are usually lower than their market value (e.g. due to historical cost convention and impairment losses) whereas the book value of debt remains relatively close to its market value (e.g. interest on bank loan is usually adjusted periodically in line with prevailing market interest rates).

This occurs when the prevailing market interest rate is lower than the coupon rate.

This allows the user to estimate how much money they'd lose or gain if they sold bonds after the impact of this new prevailing market interest rate.

A premium bond has a coupon rate higher than the prevailing market interest rate, but with the added premium over the bond's par value, the effective interest rate on a premium bond is actually equal to the lower, prevailing market interest rate.

Not exact matches

The back - story is now familiar: the lowest interest rates since the 1960s that prevailed in the aftermath of 9 - 11 reduced the cost of holding a mortgage, and led many people to buy into the real estate market.

The price in the bond market will change to reflect the prevailing interest rate.

Having the flexibility to invest globally in any country or currency, including emerging markets, allows the investment team to take advantage of prevailing macroeconomic trends, opportunities in interest rates, currencies and sovereign credit to create a competitive advantage.

As usual, we need not make specific interest rate forecasts - the fact that prevailing valuations and market action are unfavorable is sufficient to hold the Strategic Total Return Fund to a relatively muted duration of about 2 years, largely in Treasury inflation - protected securities.

Given the absence of a public trading market of our common stock, and in accordance with the American Institute of Certified Public Accountants Accounting and Valuation Guide, Valuation of Privately - Held Company Equity Securities Issued as Compensation, our board of directors exercised reasonable judgment and considered numerous and subjective factors to determine the best estimate of fair value of our common stock, including independent third - party valuations of our common stock; the prices at which we sold shares of our convertible preferred stock to outside investors in arms - length transactions; the rights, preferences, and privileges of our convertible preferred stock relative to those of our common stock; our operating results, financial position, and capital resources; current business conditions and projections; the lack of marketability of our common stock; the hiring of key personnel and the experience of our management; the introduction of new products; our stage of development and material risks related to our business; the fact that the option grants involve illiquid securities in a private company; the likelihood of achieving a liquidity event, such as an initial public offering or a sale of our company given the prevailing market conditions and the nature and history of our business; industry trends and competitive environment; trends in consumer spending, including consumer confidence; and overall economic indicators, including gross domestic product, employment, inflation and interest rates, and the general economic outlook.

Historically, those interest rate and nominal growth effects have largely offset, which is why Market Cap / GVA has been reliably correlated with actual 10 - year S&P 500 nominal total returns regardless of the prevailing level of interest rates.

Sidney Homer, legendary historian of the bond market and author of A History of Interest Rates, writes of the prevailing psychology in 1946, the last secular peak in the long - term bond market:

I quote former Cleveland Fed president, Jerry Jordan, on point: «Yields of market - determined interest rates subsequently fell and remain below the levels that prevailed before the increase in administered rates» (Jordan 2016: 26).

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

The Bill specifies that the Secretary of State has the power to raise interest rates, and these must be lower than those prevailing on the market, or equal to them but with better conditions.

So, market participants who buy and sell bonds at different prices are expressing different views about a number of variables: the likelihood that these cash flows will be received (credit quality); the velocity at which they may be received (prepayment or extension); their relative value to other bonds; and their interest rates relative to prevailing rates.

Your bank may be willing to lend if you show some credibility on that front, but may still offer you a loan that may be a higher rate of interest than the prevailing rates in the markets.

The plan administrators must set a «reasonable» interest rate that reflects the prevailing market rate for similar loans.

As a result, the fund has cash available to invest in debt securities and / or money market instruments which generally earn prevailing interest rates.

The market value of an investment in bonds will change according to the prevailing interest rate environment and the perceived credit worthiness of the borrower.

As the name implies a floating rate of interest is one that varies according to the prevailing conditions in the market.

If a CD has a step - rate, the interest rate of the CD may be higher or lower than prevailing market rates.

The interest rate on such a loan is tied to an index, commonly Treasury Bill or Cost of Funds Index, and changes with prevailing market rates.

If there is any chance a holder of individual bonds may need to sell their bonds and «cash out», interest rate risk could become a real problem (conversely, bonds» market prices would increase if the prevailing interest rate were to drop, as it did from 2001 through 2003.

If the prevailing interest rate at issue was 5 %, but rose to 6.25 % soon after, the market would likely adjust the price of the bond to $ 800 to make its yield competitive.

The interest rate on VA loans can be negotiated based on prevailing rates in the mortgage market.

Most borrowers opt for a Personal Loan Balance Transfer to take advantage of the prevailing low / competitive interest rates in the market.

If your CD has a step rate, the interest rate of your CD may be higher or lower than prevailing market rates.

When the market perceives the yield on a bond to be too low, its price will fall to bring the yield in line with market expectations or prevailing interest rates.

They also caution that the returns buyers earn can be lower than those available from traditional debt securities paying interest at prevailing market rates.

Bad credit mortgage refinance is right for you if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate.

The interest rate reflects the prevailing interest index in the market.

Eurodollar futures prices are determined by the market's forecast of the 3 - month US$ LIBOR interest rate expected to prevail on the settlement date.

Sources of mortgage funds will shift from the subsidized rates heretofore provided by the small saver to «bond - backed» sources which will reflect the higher interest rates prevailing in the loan - funds markets.

HFP: The Horizons Active Floating Rate Preferred Share ETF seeks to generate income consistent with prevailing short - term preferred share yields while stabilizing the market value of the ETF from the effects of interest rate fluctuatiRate Preferred Share ETF seeks to generate income consistent with prevailing short - term preferred share yields while stabilizing the market value of the ETF from the effects of interest rate fluctuatirate fluctuations.

Savings account let you conveniently avoid the negative interest rates prevailing on the market.

«The return from a liquid fund will depend upon a lot on the prevailing interest rates in the market.

The bottom line is that in majority of the US housing markets, it is becoming cheaper to own than to rent at the prevailing mortgage interest rate.

In a fixed annuity, the rate of interest set by the insurance company each period based on prevailing market rates.

As an example, loans provided at generally prevailing interest rates are not gifts, but a judge could not accept a loan from a financial institution at below - market interest rates unless the same rate was being made available to the general public for a certain period of time or only to borrowers with specified qualifications that the judge also possesses.

Whole life policies generally guarantee the owner a modest minimum interest rate, which is usually comparable to prevailing CD or money market rates.

The Unit Price of the Units may fluctuate depending on factors and forces affecting the capital markets and the level of interest rates prevailing in the market;

Unlike universal life insurance policies, the cash value, premium requirements, and death benefit of Farmers Simple Whole Life policy do not vary based on prevailing interest rates or market performance.

The rate of interest will be declared by the Company from time to time, based on then prevailing market conditions.

This option is quite favorable because the interest rates offered by the insurers are comparatively lower than prevailing market rates.

A general role of thumb is that refinancing becomes worth your while if the current interest rate on your mortgage is at least 2 percentage points higher than the prevailing market rate.