Soft Loan.

A soft loan is a loan with terms that are more flexible than a conventional loan. For example, a soft loan may have a lower interest rate, a longer repayment period, or a grace period for making payments. Soft loans are often made by governments or international organizations to promote economic development in developing countries. … Read more

What Is a Equity Risk Premium?

The equity risk premium (ERP) is the excess return that an equity portfolio is expected to earn over a risk-free rate. The ERP is often used as a measure of the riskiness of equity investments. The equity risk premium can be decomposed into two parts: the market risk premium and the size premium. The market … Read more

Maintenance Bond.

A Maintenance Bond is a type of fixed income security that is issued by a company in order to raise funds for maintaining its facilities and equipment. The bond is typically issued for a term of five to ten years, and pays interest semi-annually. At the end of the term, the bondholder will receive the … Read more

Unsystematic Risk.

Unsystematic risk is a type of risk that is inherent to a particular security or company and that can be diversified away by investing in a variety of securities. This type of risk is also known as specific risk or diversifiable risk. Systematic risk, on the other hand, is a type of risk that is … Read more