Common Contracts
1 similar null contracts
By-July 4th, 2019
A debt agreement is a contract between the lender and the borrower, where the borrower borrows a certain notional amount at a pre-defined interest rate structure from the lender under mutually agreed terms and conditions. At any point in time, if the lender or the borrower wants to determine the value of the contract, they need to first estimate its yield which is typically a challenging prospect. To address this issue, the paper proposes various techniques to estimate the yield including the sister security approach, the yield trending approach, yield build-up, yield-to- worst and yield based on capital structure.
