Tag: formula
Heath-Jarrow-Morton Model (HJM Model)
What is 'Heath-Jarrow-Morton Model - HJM Model' A model that applies forward rates to an existing term structure of interest rates to determine...
Yield To Average Life
What is 'Yield To Average Life' The yield on a fixed-income security when the average maturity is substituted for the maturity date...
Years Certain Annuity
What is 'Years Certain Annuity' An insurance product that pays the holder a monthly income for a specified number of years. A...
Harmonic Average
DefinitionIn mathematics, the harmonic mean is one of several kinds of average, and in particular one of the Pythagorean means. Typically, it is appropriate...
Yield Variance
What is 'Yield Variance' Yield variance is the difference between actual output and standard output of a production or manufacturing process, based...
Yield To Maturity (YTM)
What is 'Yield To Maturity (YTM)' Yield to maturity (YTM) is the total return anticipated on a bond if the bond is...
Implied Rate
What is an 'Implied Rate' An implied rate is an interest rate that is determined by the difference between the spot rate...
Yearly Rate Of Return Method
Yearly Rate Of Return Method What is 'Yearly Rate Of Return Method ' More commonly referred to as annual percentage rate....
Immediate Payment Annuity
What is an 'Immediate Payment Annuity' An immediate payment annuity is an annuity contract that is purchased with a single lump-sum payment...
IRR – Internal Rate of Return
In order to build shareholder equity, firms carefully evaluate projects to decide which projects they should fund and which they shouldn’t. The project management...