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  2. Duration (finance) - Wikipedia

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

    Modified duration is the name given to the price sensitivity. It is (-1) times the rate of change in the price of a bond as a function of the change in its yield. [4] Both measures are termed "duration" and have the same (or close to the same) numerical value, but it is important to keep in mind the conceptual distinctions between them. [5]

  3. Cost-plus pricing - Wikipedia

    en.wikipedia.org/wiki/Cost-plus_pricing

    Markup price = (unit cost * markup percentage) Markup price = $450 * 0.12 Markup price = $54 Sales Price = unit cost + markup price. Sales Price= $450 + $54 Sales Price = $504 Ultimately, the $54 markup price is the shop's margin of profit. Cost-plus pricing is common and there are many examples where the margin is transparent to buyers. [4]

  4. Relative change - Wikipedia

    en.wikipedia.org/wiki/Relative_change

    A percentage change is a way to express a change in a variable. It represents the relative change between the old value and the new one. [6]For example, if a house is worth $100,000 today and the year after its value goes up to $110,000, the percentage change of its value can be expressed as = = %.

  5. Rate of return - Wikipedia

    en.wikipedia.org/wiki/Rate_of_return

    The difference between the annualized return and average annual return increases with the variance of the returns – the more volatile the performance, the greater the difference. [ note 1 ] For example, a return of +10%, followed by −10%, gives an arithmetic average return of 0%, but the overall result over the 2 subperiods is 110% x 90% ...

  6. Relative purchasing power parity - Wikipedia

    en.wikipedia.org/wiki/Relative_Purchasing_Power...

    A simple numerical example: If prices in the United States rise by 3% and prices in the European Union rise by 1%, then the price of EUR quoted in USD should rise by approximately 2%, which is equivalent with a 2% depreciation of the USD or an increase in the purchasing power of the EUR relative to that of the USD. Note that the above ...

  7. Fixed vs. variable interest rates: How these rate types work ...

    www.aol.com/finance/fixed-vs-variable-interest...

    In many cases, the choice between fixed and variable rates will be a choice between products, rather than providers. For example, it’s difficult to find a variable-rate loan or a fixed-rate high ...

  8. Valuation of options - Wikipedia

    en.wikipedia.org/wiki/Valuation_of_options

    The intrinsic value is the difference between the underlying spot price and the strike price, to the extent that this is in favor of the option holder. For a call option, the option is in-the-money if the underlying spot price is higher than the strike price; then the intrinsic value is the underlying price minus the strike price.

  9. What the Fed rate increase means for your credit card bill - AOL

    www.aol.com/finance/fed-rate-increase-means...

    File - Credit cards as seen July 1, 2021, in Orlando, Fla. A low credit score can hurt your ability to take out a loan, secure a good interest rate, or increase a credit card spending limit.