A Measure for the Extra-costs to Evaluate the Global Cost of Credit

Autor:	Mariacristina Uberti, Luisa Tibiletti
Rok vydání:	2021
Předmět:	Effective Annual Interest (EAR) global cost of credit media_common.quotation_subject Measure (physics) Addendum ComputerApplications_COMPUTERSINOTHERSYSTEMS extra-costs Macaulay duration Payment Annual percentage rate Econometrics Economics Duration (project management) media_common
Popis:	The aim of this note is to measure the impact of the extra-costs payment on the Effective Annual interest Rate (EAR) of a consumer instalment credit. We show that EAR can be approximated by augmenting the credit rate with an extra-costs rate addendum. This latter addendum is a function of the Macaulay duration of the extra-costs payments.
Databáze:	OpenAIRE
Externí odkaz:	https://explore.openaire.eu/search/publication?articleId=doi_dedup___::e7e5949663640467904357a235a0a9e6 https://doi.org/10.9734/bpi/ieam/v6/5362d Zobrazit plný text záznamu