PPT-Risk-free interest rate workshop

Brian Kipps Swaps vs Bonds Theoretical considerations In evaluating an ideal risk free yield curve one should consider the characteristics required from such a curve Observable Transparent quoted in the open market easily validated. The Effective Annual . Rate (EAR). Indicates the total amount of interest that will be earned at the end of one year. The EAR considers . the effect of compounding. Also referred to as the effective annual yield (EAY) or annual percentage yield (APY). (Chapter 6). The cost of money. The price, or cost, of debt capital is the interest rate.. The price, or cost, of equity capital is the required return. The required return investors expect is composed of compensation in the form of dividends and capital gains.. Cash . Balance Plans in 2015 (Advanced. ). Presented by. Lawrence . Deutsch. , FSPA, MAAA, EA, Owner, Penguin Consulting and Design, Ltd, Fallbrook, CA. Andrew . Ferguson. , FSA, . MAAA, EA, Partner. Utility For Importer & Exporter. NEHA ABHISHEK, BANGALORE. Batch: 22, (5. th. July to 30. th. August, 2014). Agenda. Derivatives. List of Derivatives under various . categories. Concept of Hedging. Institute of Economic Studies. Faculty of Social Sciences. Charles University in Prague. Financial markets instruments . Interest rate swap. 2. Coupon swap. Basic notions. Interest rate swap . is a contract which commits two parties to exchange, over an agreed period, two streams of interest payments, each calculated using a different interest rate. 1. Stock market indexes. Dow Jones Industrial Average List . http://money.cnn.com/data/dow30/. S&P 500 Complete list . http://nyjobsource.com/sandp1.html. NASDAQ . http://en.wikipedia.org/wiki/Nasdaq_Composite. 1. Managing Interest Rate Risk. Interest Rate Risk. The potential loss from unexpected changes in interest rates which can significantly alter a bank’s profitability and market value of equity. 2. Managing Interest Rate Risk. Interest Rate. principle. interest payment. interest rate = payment/principle. (these days often daily, but expressed as a yearly equivalent). Future Value: The future value of 100 at r% for t years is the amnt of money you will have in t years if invested at r%: principle*(1 r)^t. Comment on: Kiley and Roberts, “Monetary Policy in a Low Interest Rate World” Brookings Papers on Economic Activity Ben Bernanke March 24, 2017 Monetary policy at ZLB/ELB – a BPEA tradition Krugman Banks customers) Banks delaers Securities firms Insurance Companies Pensions, Asset managements Investment trusts, Hedge funds Corporates, others Interbank Transactions The numbers represent the pro BankscustomersBanksdelaersSecuritiesfirmsInsurance CompaniesPensions Asset managementsInvestment trustsHedge fundsCorporates othersInterbank TransactionsThe numbers represent the proportion of NonIBOR kindly visit us at www.examsdump.com. Prepare your certification exams with real time Certification Questions & Answers verified by experienced professionals! We make your certification journey easier as we provide you learning materials to help you to pass your exams from the first try. Professionally researched by Certified Trainers,our preparation materials contribute to industryshighest-99.6% pass rate among our customers. Overview. Types of Financial Risk. Credit Risk Management. Strong credit control procedures. Insurance. Debt factoring without recourse. Political Risk Management. Entering into foreign joint ventures. changing global setting. Mr. . Dooneshsingh Audit, Chief Policy Unit & . Mr. . Fadil . Dookhy. , Chief Reserve Management Unit. 14 July 2014. Monetary Policy Committee. Turnaround in monetary policy .