PBT is Profit Before Tax and PAT is Profit After Tax. Once you’ve paid your dividends, Retained Earnings is what’s left.
Profit is Revenue less Costs.
When Interest Rates (IR) are high (i.e. borrowing is expensive) consumers pay more for their mortgages, loans and credit, so have less disposable income and spend less…inflation goes down.
You probably sort of know how index linked gilts, or “linkers,” work. The redemption value is linked to the change in the retail price index, or RPI, that takes place over the life of the gilt.
Another word for duration could be the average life of a bond. Most bonds pay annual or semi-annual coupons and have a redemption date. So whilst a bond maturing in three years and with a £5 annual…
If you like this article, follow us for more insights.
To receive more content like this subscribe today.