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What is the difference between a fixed rate bond and a floating rate bond?
"A fixed rate bond is a bond that has a fixed rate, whereas a floating rate bond can change due to different variables. BNET is a great business resource that will help with learning about fixed and floating rate bonds."
What Does The Term Floating Charge Mean?
A floating charge is a type of security under which all the assets of the business, apart from the ones which are subject to a mortgage or fixed charge, are used as security for the business loan.
What is the difference between fix and variable mortgages?
The difference between fixed and variable mortgages are that in a fixed mortgage, the rate can not change. In a variable mortgage, the rate changes with time.
What are interest rate swaps?
In interest rate swaps, each party agrees to pay either a fixed or a floating rate in a particular currency to the other party. The fixed or floating rate is multiplied with the Notional Principal Amount (NPA). This notional amount is not exchanged between the parties involved in the swap. This NPA is used only to calculate the interest flow between the two parties. The most common interest rate swap is where one party 'A' pays a fixed rate to the other party 'B' while receiving a floating rate which is pegged to a reference rate like LIBOR.
What is crystallisation in Banking Terms?
The purpose of crystallization is to protect the chargee's interest by assuring that a floating charge becomes fixed ahead of any claims which would otherwise compete with those of the chargee. accurate-sureshot-stock-tips.blogspot.com
