Business Finance

In finance, the term “yield gap” typically refers to the difference between the yield of two different financial instruments or investments. This comparison is often made to assess the relative attractiveness of different assets or to evaluate the risk-return tradeoff. Here are a few specific contexts in which the term “yield gap” is commonly used […]

Yield to Maturity (YTM) is a financial term used to describe the total anticipated return on an investment if it is held until it matures. YTM is expressed as an annual percentage rate (APR) and is calculated by considering the investment’s current market price, its face value (or par value), its coupon interest rate, the

“Yield to Redemption” (YTR), also known as “Yield to Call” (YTC) when referring to callable bonds, is a financial metric used to calculate the expected annual rate of return an investor can earn on a bond if it is held until it is redeemed or called by the issuer. This metric is especially relevant for

Zero-based budgeting (ZBB) is a budgeting technique in which every expense must be justified for each new period. Unlike traditional budgeting, where existing spending levels are used as a baseline, in zero-based budgeting, every function within an organization is analyzed for its needs and costs. Therefore, all expenses must be justified for each new period,

A zero-coupon bond is a type of financial instrument that does not make periodic interest payments like traditional bonds. Instead, it is issued at a discount to its face value and redeemed at the face value when it matures. The return to the investor is the difference between the purchase price and the face value,

A Z-score, also known as a standard score, is a statistical measurement that quantifies how far a particular data point is from the mean (average) of a dataset in terms of standard deviations. It’s a way to standardize and compare data points from different distributions. The formula for calculating the Z-score of a data point