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would it have been an advantage to link my home loan to the JIBAR instead of the Prime rate on 9 February 2009?

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15y ago

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Is the 3 month jibar rate already compounded quarterly ie NACQ?

The 3 month Jibar is derived from 3-month NCD rates. Likewise the 1-month Jibar is derived from 1-month NCDs. The Jibar rates are all quoted as nominal annual rates, which means that the interest you will receive on a 3-month investment at Jibar will be calculated as (3M Jibar/4) x (amount invested). Now if you are able to invest money for 3 months at the 3-month Jibar, you can obviously re-invest it after 3 months at the new 3-month Jibar. If the new 3M rate remains exactly the same then obviously it becomes your NACQ. The point is that it may not be the same as 3 months ago. Thus the 1-month Jibar can be seen as a NACM and the 6-month Jibar as a NACSA. A vanilla bond coupon rate is an even better example of a NACSA because it never changes. Now here is a challenge. If the 6-m Jibar is regarded as a NACSA what is the 9-month Jibar then? The short answer is that money market rates are never quoted as compounded rates - they are nominal annual rates. It depends on how the investment (or loan) is treated that determines whether they become NA compounded rates. If you invest in a 9-m NCD at 10% p.a. and re-invest the total maturity value after 9 months for another 9 months at 10% p.a., your effective interest interest rate earned for the first 12 months will be slightly more than 10%.


Find the ordinary interest on 1800 for two months at the rate of 12 percent?

To calculate the ordinary interest, use the formula: Interest = Principal × Rate × Time. Here, the principal is $1800, the rate is 12% (or 0.12), and the time is 2 months (which is 2/12 years). Thus, the interest is: Interest = $1800 × 0.12 × (2/12) = $36. So, the ordinary interest on $1800 for two months at a 12% rate is $36.


Find the ordinary interest on 1 800 for two months at a rate of 12?

To calculate the ordinary interest, use the formula: Interest = Principal × Rate × Time. Here, the principal is $1,800, the rate is 12% (or 0.12), and the time is 2 months (or 2/12 years). Thus, Interest = 1,800 × 0.12 × (2/12) = $36. Therefore, the ordinary interest on $1,800 for two months at a 12% rate is $36.


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