The aim is to measure the impact of the extra-costs payment on the Effective Annual interest Rate (EAR) of a consumer instalment credit. We show that EAR can be approximated by augmenting the credit rate with an extra-costs rate addendum. This latter addendum is a function of the Macaulay duration of the extra-costs payments.
A measure for the extra-costs to evaluate the global cost of credit
Luisa Tibiletti;Mariacristina Uberti
2020-01-01
Abstract
The aim is to measure the impact of the extra-costs payment on the Effective Annual interest Rate (EAR) of a consumer instalment credit. We show that EAR can be approximated by augmenting the credit rate with an extra-costs rate addendum. This latter addendum is a function of the Macaulay duration of the extra-costs payments.
File in questo prodotto:
| File | Dimensione | Formato | |
|---|---|---|---|
|
MAF 2020 Abstract POSTER- Tibiletti-Uberti-1.pdf
Accesso aperto
Tipo di file:
PDF EDITORIALE
Dimensione
49.27 kB
Formato
Adobe PDF
|
49.27 kB | Adobe PDF | Visualizza/Apri |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.
