There are different types of yield depending upon the nature of the security or the bond. For example, the bond has four types of yields: current yield, dividend yield, yield to maturity and tax equivalent yield.
Commercial paper is a short-term promissory note that is unsecured and is usually issued by the corporations and foreign governments. Commercial paper is a low cost alternative to bank loans for large issuers with strong credit backing. The issuance of commercial paper can be done in two ways: direct issue or dealer issue. In the first method, the paper is issued by the corporation directly to the investors whereas in the latter an agent or a bank is involved as the intermediary for the issuance of commercial paper.
Since commercial paper is a short term note, the earnings or the yield are determined by the market where the maturity and the amount of the paper can be tailored to the specifics of the investor. The commercial paper is issued at a discount rate to its maturity value. Therefore, the difference between the maturity price and the purchase price is the yield or the earnings of the investor. The note is quoted on the basis of discount yield which is a function of short-dated yield curve. The maturity of the paper is usually 270 days.
As the default risk on the note is higher than other bills such as Treasury bill, the yield on commercial paper is higher. This default risk also creates the differential between different commercial papers’ grade and rates. The yield rate is also higher than that of certificate of deposit (CD) due to low liquidity of the paper. The higher yield on the paper reflects the poor liquidity of the instrument.
In the simplest term, certificate of deposit is a receipt given by the banks for the deposits that have been placed with them. The deposits have a LIBOR fixed rate of interest as well ...
Cite this document
(“Yield Differentials Admission/Application Essay”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/384064-yield-differentials
Economic stability determines the nation’s stability in terms of earning of economic condition of the citizens and market. There are various means of measuring the economic stability and the growth or the downfall of countries. In this paper four countries; Canada, Japan, United States and United Kingdom are taken into consideration with an intention to measure and compare their economic stabilities in terms of real GDP, Productivity, Inflation of Price and Labor Market.
As a means of understanding these new paradigms to a better and more complete degree, the following discussion and analysis will be concentric upon explaining Jaffe’s approach and detailing the ways in which he advocates that this new paradigm should be implemented in place of the old and rather ineffective approach that so many businesses have integrated with over the past several decades.
The distribution and availability of healthcare is something that has grown rapidly over the past several decades. However, regardless of the fact that healthcare provision and accessibility has experienced rapid growth, key elements of society still experience accessibility issues related to health care provision; especially with relation to the overall ease of access for disenfranchised members of society – namely minorities.
However, during the particular period in question, seven years represented a great range of growth and the understanding through which different social dynamics and understandings had with regards to the way in which storylines and overall plots were presented to the viewer.
This competition as a market competition was first identified by American economist Edward Chamberlin and also by Joan Robinson who was an English economist, in 1930s (Brakman & Heijdra, 2011 p. 13).
a) Products’ physical differentiation: where size, design,
t, the worldwide importation of nurses is thriving and new importing countries are surfacing, making the trend all the more worldwide (Huston, 2013, p. 69). Finland, Ireland, and other countries in Europe, which are formerly source countries, import nurses nowadays from other
Based on the collected data, the company’s cost of capital is calculated and a discussion is made regarding decisions that companies make when deciding their capital structure.
Based on the above calculations, it could be suggested that the cost of equity
There is a strong link between rural to urban migration and evolution of labor market, its segregation, wage differentials, and flexibility of the labor market. Wage flexibility is more significant in the highly coordinated public sector and large corporations
2 Pages(500 words)Admission/Application Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Admission/Application Essay on topic Yield Differentials for FREE!