INVESTMENT EFFECTIVE INTEREST RATE FOR THE ANALYSIS OF YIELD AND CREDIT SPENDING
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INVESTMENT EFFECTIVE INTEREST RATE FOR THE ANALYSIS OF YIELD AND CREDIT SPENDING
Annotation
PII
S042473880000616-6-1
Publication type
Article
Status
Published
Authors
Alexander Zhevnyak 
Pages
95-105
Abstract

Based on the methodology of the investment effective interest rate (ESR), the formulas for calculating the profitability of the loan to the lender and costly for the borrower proposed. It is shown that the rate of internal rate of return that is used today by banks for these purposes is not a measure of profitability / costs on the loan. For the most common practice of credit schemes investigated the dependence of investment EPS of reinvestment rates and the main parameters of the loan – the term nominal interest rates, the rates of commission. The features of the definition and interpretation of investment EPS described. Practical recommendations for lenders and borrowers on the most effective credit schemes in the context of growing and declining interest rates proposed.

Keywords
loan, lender, borrower, profi tability of credit, effective interest rate, EPS, IRR, reinvestment, discounting
Date of publication
01.07.2012
Number of purchasers
0
Views
68
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0.0 (0 votes)
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Additional sources and materials

Zhevnyak A.V. (2010): Matematicheskaya teoriya diskontirovaniya denezhnykh potokov. Matematicheskaya teoriya kredita. Ryazan': Rinfo.

Zhevnyak A.V. (2012): Matematicheskie modeli i otsenki ehffektivnosti kredita // Ehkonomika i mat. metody. T. 48. Vyp. 2.

Kuznetsov B.T. (2010): Investitsii. M.: Yuniti–Dana.

Fedorov B.V. (2008): Kak pravil'no vzyat' i vernut' kredit: na pokupku nedvizhimosti, avtomobilya, tekhniki. SPb.: Piter.

Chetyrkin E.M. (2002): Finansovaya matematika. M.: Delo.