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  2. What is a factor rate and how to calculate it - AOL

    www.aol.com/finance/factor-rate-calculate...

    Using the factor rate provided by the lender, you can quickly calculate the cost of the borrowed funds. For example, if you borrowed $100,000 with a factor rate of 1.5, multiply those two figures ...

  3. Factor rate vs. interest rate for business loans - AOL

    www.aol.com/finance/factor-rate-vs-interest-rate...

    How to calculate factor rate costs. One of the benefits of factor rates is that they make it easy to calculate the cost of your loan. Simply multiply the loan’s principal by the factor rate.

  4. Purchasing power parity - Wikipedia

    en.wikipedia.org/wiki/Purchasing_power_parity

    The question, which Gustav Cassel tried to answer in his works written during that period, was not how exchange rates are determined in the free market, but rather how to determine the appropriate level at which exchange rates were to be fixed during the restoration of the system of fixed exchange rates.

  5. Currency adjustment factor - Wikipedia

    en.wikipedia.org/wiki/Currency_adjustment_factor

    A currency adjustment factor (CAF) is a fee placed on top of freighting charges for carrier companies developed to account for constantly changing exchange rates between the dollar and other currencies. Its goal is to offset any losses from fluctuating exchange rates for carriers. [1] Calculation basis and methodology may vary from carrier to ...

  6. Forward rate - Wikipedia

    en.wikipedia.org/wiki/Forward_rate

    The forward rate is the future yield on a bond. It is calculated using the yield curve. For example, ... The discount factor formula for period (0, t) ...

  7. Bootstrapping (finance) - Wikipedia

    en.wikipedia.org/wiki/Bootstrapping_(finance)

    To derive this rate we observe that the theoretical price of a bond can be calculated as the present value of the cash flows to be received in the future. In the case of swap rates, we want the par bond rate (Swaps are priced at par when created) and therefore we require that the present value of the future cash flows and principal be equal to ...

  8. Exposure at default - Wikipedia

    en.wikipedia.org/wiki/Exposure_at_default

    Based on Basel Guidelines, EAD for commitments measures the amount of the facility that is likely to be drawn further if a default occurs. [3] Two popular terms used to express the percentage of the undrawn commitment that will be drawn and outstanding at default (in case of a default) are Conversion Factor (CF) [ 4 ] and Loan Equivalent (LEQ).

  9. Exchange-rate pass-through - Wikipedia

    en.wikipedia.org/wiki/Exchange-rate_pass-through

    Formally, exchange-rate pass-through is the elasticity of local-currency import prices with respect to the local-currency price of foreign currency. It is often measured as the percentage change , in the local currency , of import prices resulting from a one percent change in the exchange rate between the exporting and importing countries. [ 1 ]