Canadian Currency Exchange

Canadian Currency Exchange » invest egold exchange

1. jaime055
   Member

   hello my fellow forumites,
   several chums address me regarding what compound accreted value - cAV means.
   Compound accreted value - cAV is a measure of theoretical value of a zero-coupon bond at any given point in time. Because there are no interest payments like there are with traditional bonds, the interest of a zero-coupon bond accrues until maturity. Therefore, the CAV can be calculated by adding all of the interest earned up to a given point in time to the original price.
   Calculating a zero-coupon bond's CAV becomes important if the bond carries a call provision. This is because call provisions for zero-coupon bonds are typically linked to the bond's CAV. The provision will usually stipulate that the issuer can call the bond on a specific date at a price that is a premium to the bond's CAV.
   A zero-coupon bond is trading at a premium if it costs more than its CAV at that specific point in time. Conversely, the zero-coupon bond is trading at a discount if it costs less than its CAV.

   Posted 6 months ago #
2. lyons1976
   Member

   if yuo are interested in analyzing the current market layout, you'd best pay little attention to trade ing logic like the proposition that the Russian Rouble is estimated to stay the same versus the South african Rand for a while, and concentrate on tertiary sector industry related events like, for example the fact that Russian Rouble rates will be affected by the updates in the control equipment import market, and because of that is going to crash.

   Posted 6 months ago #

RSS feed for this topic

Reply

You must log in to post.