Question
Portfolio entry is considered as an account consisting of all the liabilities that an investment company is responsible for while entering an insurance treaty. A
Portfolio entry is considered as an account consisting of all the liabilities that an investment company is responsible for while entering an insurance treaty. A portfolio entry mainly accounts for premium that are not earned for the policies which are not active during an accounting period where the earned premium which carry over into a future accounting period. Coupon rate regarding bond is considered as the rate of interest paid by the issuers of the regarding the bond face value. It is considered as the periodic rate of interest paid by the issuers of the bond to its purchasers. This rate is calculated on the face value of the bond or the par value and considerably not on the issue price or the value of market. Interest rate where each year the bond pays upto 10% in . Here the coupon rate in the interest is estimated or evaluated with the help of parents value of shares. When rate of interest rises above 10%, the price of the bond will fail when the investor wishes to sell it. In a condition when the interest rate falls,the bond price rises. This form of situation occurs when the interest rate increases,the investors can form a better rate of return. Hence the price of the bond is made to low for yielding the current rate. The coupon rate is estimated on the face value of the which is need to be invested. This rate is being decided by the bond issuer to the purchaser. The interest rate is estimated on the basis of the risk of the amount to be lended to the borrower. This rate is being decided only by the lender. Par value is simply the face value of a bond. It is important for a bond because it determines the maturity value of the payments made. The impact of tax shield on fixed income yield is that the tax payment of smaller size promote free cash flow,earnings and debt paying capacity exhibited by the issuers. Similar to tax desirability having a mortgage interest, company can fully deduct interest payments on corporate debts. With statement of policy makers, the advantage made by the tax would provide incentive debt financed business such as any form of equipments or other long term projects.
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