Constant yield method


 

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Constant yield method

Allocation of annual interest on a zero-coupon security for income tax use.



Constant yield method

Similar Matches

Constant dollars

Constant dollars

Dollars of constant purchasing power. That is, corrected for inflation. More precisely includes reference to a base year for comparison, e.g. "in constant 1992 dollars." Same as constant prices.


Constant prices

Constant prices

See constant dollars.


Constant ratio plan

Constant ratio plan

Maintaining a predetermined ratio between stock and fixed income investments through regular adjustments of distribution of funds into different investments. See: formula investing.


Constant elasticity of substitution function

Constant elasticity of substitution function

See CES function


Constant dollar plan

Constant dollar plan

A plan which enables investors to accumulate shares in a mutual fund by purchasing them on a regular basis (for example monthly) with a fixed dollar amount. The dollar amount buys more shares when the price is low than when it is high, and over time the investor will have accumulated shares at a cost which is neither high nor low, but average for the period in question. Hence the other name for this process - 'dollar cost averaging'. In the UK, the same principles apply to savings plans for unit trusts, and the process is called 'pound cost averaging'.


Further Suggestions

Loan Constant
Constant dollar plan
Constant growth model
Constant dollars
Constant returns to scale


 
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