Prepayments

P. Nettesheim, Ch. Schiitte, M. Hochbruck, and Ch. Lubich. (work in prepay ration)... 

Freiluftbewitterung, /. open-air weathering, freimachen, v.t. set free, liberate, disengage prepay. 

Working capital normally includes stocks, trade debtors, prepayments, trade creditors, accruals, current taxation, etc. 

Comments on the Methods of Separation of Plasma Lipoproteins on a Prepay rative Scale. 113... 

Arylzinc halides, and zinc dialkyls and di-aryls may be prepay by the action of the Grignard reagent on anhydrous zinc chloride in ether solution.6... 

Weekly prepay EFT 1.50% Perpetual inventory system, Internet accessible provide inventory management reports If the merchandise is salable and returned within 180 days of purchase date, wholesaler will provide a 100 percent credit. If it is returned after 180 days, only 85 percent credit will be given. Partial bottles, products that are 3 months after date of expiration, and other selected products are nonreturnable. 

A HMO is a type of MCO that offers comprehensive healthcare to voluntarily enrolled members, who prepay a fixed amount of money in exchange for access to a clearly defined package of health plan benefits. Generally, HMOs receive a fixed fee from members, regardless of whether... 

The Secret of Prepaying the Mercury with his Arsenic for the Separatmg its Faeces. 

Association of Managed Healthcare Organizations (AMHO) national trade association for open model managed care organizations, at-risk accepting prepayment as foil coverage for a predetermined health care benefit having to assume the financial liability for any loss which occurs when premiums paid are less than the cost of services provided. 

By far the most common form of private finance is out-of-pocket payment, made at the time when people seek care and treatment, rather than through a prepayment scheme. Figure 2 shows that out-of-pocket payment in the high-income areas of the world seldom exceeds 20% of the total while it exceeds 90% in some low-income countries. Out-of-pocket payment for health care tends to be both inequitable and inefficient when it plays a major role in health financing there is clear evidence that the burden of payment for health care falls heavily on the poorest households at the time when a family member is sick at these times, income may actually be reduced by illness and it is hkely that the medicines which will be needed will be bought in insufficient quantifies or not at all. 

Government BOEING General Electric Airline prepayments Subcontractors... 

Orders should be accompanied by prepayment of 100 Austrian Schillings in the form of a cheque or credit card (VISA, Mastercard)... 

Risk can thought of as the possibility of unpleasant surprise. Fixed-income securities expose the investor to one or more of the following types of risk (1) interest rate risk (2) credit risk (3) call and prepayment risk (4) exchange rate risk (5) liquidity risk and (6) inflation or purchasing power risk. 

As noted, a bond may contain an embedded option which permits the issuer to call or retire all or part of the issue before the maturity date. The bondholder, in effect, is the writer of the call option. From the bondholder s perspective, there are three disadvantages of the embedded call option. First, relative to bond that is option-free, the call option introduces uncertainty into the cash flow pattern. Second, since the issuer is more likely to call the bond when interest rates have fallen, if the bond is called, then the bondholder must reinvest the proceeds received at the lower interest rates. Third, a callable bond s upside potential is reduced because the bond price will not rise above the price at which the issuer can call the bond. Collectively, these three disadvantages are referred to as call risk. MBS and ABS that are securitized by loans where the borrower has the option to prepay are exposed to similar risks. This is called prepayment risk, which is discussed in Chapter 11. 

A yield can be calculated given the projected cash flows based on an assumed prepayment rate. The yield is the interest rate that will make the present value of the assumed cash flows equal to the clean price plus accrued interest. A yield calculated in this manner is called a cash flow yield. 

Although it is commonly quoted by market participants, the cash flow yield suffers from limitations similar to the yield to maturity. These shortcomings include (1) the projected cash flows assume that the prepayment speed will be realized (2) the projected cash flows are assumed to be reinvested at the cash flow yield and (3) the mortgage-backed or asset-backed security is assumed to be held until the final payoff of all the loans in the pool based on some prepayment assumption. If the cash flows are reinvested at rate lower than the cash flow yield (i.e., reinvestment risk) or if actual prepayments differ from those projected, then the cash flow yield will not be realized. Mortgage-backed and asset-backed securities are particularly sensitive to reinvestment risk since payments are usually monthly and include principal repayments as well as interest. 

The two most common types of embedded options are call (or prepay) options and put options. As interest rates in the market decline, the issuer may call or prepay the debt obligation prior to the scheduled principal repayment date. The other type of option is a put option. This option gives the investor the right to require the issuer to purchase the bond at a specified price. Below we will examine the price/yield relationship for bonds with both types of embedded options (calls and puts) and implications for price volatility. 

In the discussion below, we will refer to a bond that may be called or is prepayable as a callable bond. Exhibit 4.16 shows the price/yield relationship for an option-free bond and a callable bond. The convex curve given by a-a" is the price/yield relationship for an option-free bond. The unusual shaped curve denoted by a-b in the exhibit is the price/yield relationship for the callable bond. 

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