Examlex
Trading on the equity (leverage) refers to the
Effective (Annualized) Yield
The effective, or annualized yield, calculates the return on an investment by taking into account the effect of compounding interest over a one-year period.
Quarterly Compounding
The process of calculating interest and adding it to the principal sum of a loan or deposit on a quarterly basis.
Effective Rate
The interest rate on a loan or investment, adjusted for the effect of compounding over a given period.
Compounded Quarterly
Generating interest on both the initial principal and previously earned interest every three months.
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