Post by ashtondav on Mar 19, 2017 16:26:04 GMT
Please help me with the math.
I have just looked at the SM and there is a loan for sale with 181 days remaining:
It has an interest rate of 10%
It has a premium of 2%
And a best effective rate of 5.88%
How is that?
I assumed that the BER was the annualised rate you receive if you keep the purchased loan through to redemption. So if i buy a £100 loan with 181 days to go and i pay £102 for it, and after 6 months i get £105 that would be an annulised 9.8%, wouldn't it?
I have just looked at the SM and there is a loan for sale with 181 days remaining:
It has an interest rate of 10%
It has a premium of 2%
And a best effective rate of 5.88%
How is that?
I assumed that the BER was the annualised rate you receive if you keep the purchased loan through to redemption. So if i buy a £100 loan with 181 days to go and i pay £102 for it, and after 6 months i get £105 that would be an annulised 9.8%, wouldn't it?
