Why are stabelcoins no longer stable?
This article was prepared for the link3 project, as part of a contest of posts. Stablecoin is commonly consided to be a cryptocurrency whose price is pegged to a particular fiat currency, such as the Dollar or the Euro. Today, the market capitalization of the three most popular stablcoins (USDT, USDC, BUSD) exceeds $120 billion according to Coinlist. However, there are other types of stablcoins, such as DAI (fourth place in the top of stablcoins with a capitalization of $ 5.6 billion). By buy...
Why are stabelcoins no longer stable?
This article was prepared for the link3 project, as part of a contest of posts. Stablecoin is commonly consided to be a cryptocurrency whose price is pegged to a particular fiat currency, such as the Dollar or the Euro. Today, the market capitalization of the three most popular stablcoins (USDT, USDC, BUSD) exceeds $120 billion according to Coinlist. However, there are other types of stablcoins, such as DAI (fourth place in the top of stablcoins with a capitalization of $ 5.6 billion). By buy...
Yield to Maturity (YTM)
What Is Yield to Maturity (YTM)?Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but is expressed as an annual rate. In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate. Yield to maturity is also referred to as "book yield" or "redemption yi...
Yield to Maturity (YTM)
What Is Yield to Maturity (YTM)?Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. Yield to maturity is considered a long-term bond yield but is expressed as an annual rate. In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate. Yield to maturity is also referred to as "book yield" or "redemption yi...
Zero-One Integer Programming
What Is Zero-One Integer Programming?Zero-one integer programming (which can also be written as '0-1' integer programming) is a mathematical method of using a series of binary functions; in particular, yes ('1') and no ('0') answers to arrive at a solution when there are two mutually exclusive options. In the world of finance, zero-one integer programming is often used to provide answers to capital rationing problems, as well as to optimize investment returns and...
Zero-One Integer Programming
What Is Zero-One Integer Programming?Zero-one integer programming (which can also be written as '0-1' integer programming) is a mathematical method of using a series of binary functions; in particular, yes ('1') and no ('0') answers to arrive at a solution when there are two mutually exclusive options. In the world of finance, zero-one integer programming is often used to provide answers to capital rationing problems, as well as to optimize investment returns and...
Zero-Coupon Swap
What Is a Zero-Coupon Swap?A zero-coupon swap is an exchange of cash flows in which the stream of floating interest-rate payments is made periodically, as it would be in a plain vanilla swap, but where the stream of fixed-rate payments is made as one lump-sum payment at the time when the swap reaches maturity, instead of periodically over the life of the swap.KEY TAKEAWAYSA zero-coupon swap involves the fixed side of the swap being paid in one lump sum when the contract reaches maturity.The v...
Zero-Coupon Swap
What Is a Zero-Coupon Swap?A zero-coupon swap is an exchange of cash flows in which the stream of floating interest-rate payments is made periodically, as it would be in a plain vanilla swap, but where the stream of fixed-rate payments is made as one lump-sum payment at the time when the swap reaches maturity, instead of periodically over the life of the swap.KEY TAKEAWAYSA zero-coupon swap involves the fixed side of the swap being paid in one lump sum when the contract reaches maturity.The v...
Retained Earnings
What Are Retained Earnings?Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The word "retained" captures the fact that because those earnings were not paid out to shareholders as dividends, they were instead retained by the company. For this reason, retained earnings decrease when a company either loses money or pays dividends and increase when new profits are created.KEY TAKEAWAYS...
Retained Earnings
What Are Retained Earnings?Retained earnings are an important concept in accounting. The term refers to the historical profits earned by a company, minus any dividends it paid in the past. The word "retained" captures the fact that because those earnings were not paid out to shareholders as dividends, they were instead retained by the company. For this reason, retained earnings decrease when a company either loses money or pays dividends and increase when new profits are created.KEY TAKEAWAYS...
