TheBusinessProfessor
  • Home
  • Academy
  • SearchBase
  • Membership
    • Account
Select Page

Return on Investment (ROI) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is Return on Investment?Return on investment (ROI) is a profitability ratio used for measuring the amount of profit generated by an investment relative to its cost. It evaluates the cost efficiency of an investment and is expressed as a percentage or ratio.How to...

Hurdle Rate (Finance) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Hurdle Rate?A hurdle rate, also called a break-even yield is the minimum acceptable rate of return on investment (ROI) that is mandated by an investor or a fund manager as a form of compensation for the risks undertaken because of making that investment. As...

Yield Spread – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Yield Spread?Debt instruments with different characteristics, such as maturity date or credit/risk rating, generally have different yields. The yield spread is the difference between yields on these instruments. When the yield on a two-year treasury bond is...

Yield to Call – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

How Does Yield To Call?The Yield to Call refers to the interest that a bond or note will pay if the investor purchases and holds the instrument until its call date. A bond has a purchase price based upon the present value of future interest payments (coupons) and...

Pure Yield Pickup Swap – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Pure Yield Pickup Swap?A pure yield pickup swap is bond purchase and sale transaction, where the investor swaps her short-term, low-yield bond is exchanged for a longer-term, higher-yield bond.How Does a Pure Yield Pickup Swap Work?This transaction is used...

Hedge (Investment) – Explained

by TheBusinessProfessor | Feb 23, 2025 | Investments, Trading, and Financial Markets

What is a Hedge?A hedge  means using a financial transaction to protect yourself against a risk from one of your investments (in this case, currency risk from the contract). What is a Hedge in Exchange Rates?Specifically, you can sign a financial contract and pay a...
« Older Entries
Next Entries »

Designed by Elegant Themes | Powered by WordPress