Annual Basis: The technique in statistics of taking a figure covering a period of less than one year and extrapolating it to cover a full one year period. The process is known as annualizing.

 

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Annual Basis: The technique in statistics of taking a figure covering a period of less than one year and extrapolating it to cover a full one year period. The process is known as annualizing.

Effective Annual Yield: An annual measure of the time value of money that fully reflects the effects of compounding.

Discounted Basis: The yield or annual interest rate on a security sold to an investor at a discount. A bond that is sold at $4875 that matures to $5000 has a discount of $125. To calculate the discount yield: . . . View Full Definition

Effective Annual Interest Rate: A type of individual retirement account enabling the contribution of up to $500 per year for each child up to the age of 18 by the parents in the family.

Equivalent Annual Annuity: Related: Variable life

Equivalent Annual Cost: Annuity with the same net present value as the company's proposed investment.

Equivalent Annual Cash Flow: The annual annuity with the same value as the net present value of an investment project.

Equivalent Annual Benefit: The amount per year for some number of years that has a present value equal to a given amount.

Depreciable Basis: In investment real estate only structures can be depreciated. The depreciable basis is the original basis less the value of the land.

Cost Basis: The cost basis is the original price of an asset — usually the purchase price plus commissions. You use the cost basis to calculate capital gains and capital losses, depreciation, and return . . . View Full Definition