Category Forex Trading

Libor Wikipedia

Assume Paul owns a $1 million investment that pays him a variable LIBOR-based interest rate equal to LIBOR + 1% each quarter. Since his earnings are subject to LIBOR values and are variable in nature, he wants to switch to fixed-rate interest payments. While new currency rates have been added, many have been removed or… Read More

Economic Profit vs Accounting Profit: What’s the Difference?

You can use accounting profit to look at your business’s financial performance and see how profitable your business is. Capital is made up of long-term liabilities and the equity account of the business. To calculate opportunity cost, you multiply the interest rate against long-term debt and add that to the required return of equity investors…. Read More