Valuation of Certificates of Deposit

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Issue of Scientific Journal No. 2017-03
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  • Source Type: Journal
  • Document Type: Essay
  • Document Language: English
  • Published on: 30. 9. 2017
  • File Format: PDF
  • File Size: 742 kB

Božena Hrvoľová

In: Societas et iurisprudentia • 2017 • Volume 5 • Issue 3 • Pages 156-164 • ISSN 1339-5467

Abstract: Certificates of Deposit are securities that belong to the debt, short-term securities on the money market. It follows that for their valuations only yield method based on the present value of future income arising from and simple interest and discounting may be used. Approaches to valuing securities on the money market depend on the form of revenue – interest or discount. Interest-based are evidence of deposit, such as Certificates of Deposit, savings bonds; bringing the discount are treasury bills, commercial papers, and bills of exchange. In our paper we will focus on valuation of classic Certificates of Deposit from the point of view of their intrinsic value and income.

Key Words: Certificate of Deposit; Intrinsic Value; Current Rate of Return; Principal; Accrued Interest Income; Income for Holding.

URL: https://sei.iuridica.truni.sk/archive/2017/03/SEI-2017-03-Essays-Hrvolova-Bozena.pdf

Bibliographic Citation

HRVOĽOVÁ, B. Valuation of Certificates of Deposit. Societas et iurisprudentia [online]. 2017, vol. 5, no. 3, pp. 156-164 [cit. 2020-01-01]. ISSN 1339-5467. Available at: https://sei.iuridica.truni.sk/international-scientific-journal/archive/issue-2017-03/valuation-of-certificates-of-deposit/.