In another case if an individual purchases a bond at 120% for a bond valued at $1000, the person pays more than the par value. A bond purchased at a discount to par value will have a higher yield to maturity than the bond purchased at higher than par or face value. For example, a bond has an interest rate of 9%, a coupon face value of $1000 with 10 years to maturity and purchased at 10%...
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A bond purchased at a discount to par value will have a higher yield to maturity than the bond purchased at higher than par or face value. For example, a bond has an interest rate of 9%, a coupon face value of $1000 with 10 years to maturity and purchased at 10%. This implies that the individual paid $100 for a bond valued at $1000, the real rate of return will be $90 each year for 10 years after inflation adjustments...
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Subsidy and Sustainability R = R* ------ SDI = 0 ------ Program is Self Sustainable. 2. R < R* ------ SDI > 0 ------ Program is Running on subsidy. 3. R > R* ------ SDI < 0 ------ Program is Running in Profit...	2 / 426
The Microfinance Revolution Two main reasons that author claims make financial systems approach more viable are: • “Governments and donors cannot finance the hundreds of millions of people who constitute present unmet demand for microcredit services” • “Poverty Lending approach doesn't attempt to meet the vast demand amongst poor for voluntary saving services” The book has correctly pointed out that old paradigm by relying on incorrect assumptions regarding creditworthiness (poor cannot afford to repay credit at microcredit rates), willingness and capacity to save and need for technical assistance created a model which resulted in high arrears, corruption, discouraging of institutional savings and high cost because of assistance...	10 / 2741
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Lending Markets It is therefore important that the secondary market be highly liquid. Secondary marketing is vital to an efficient and modern capital market. Fundamentally, secondary markets mesh the investor's preference for liquidity with the capital user's preference to be able to use the capital for an extended period of time...	3 / 673