Overall portfolio disbursal Annualized Interest rate Monthly interest rate Assume all loans are disbursed at the above interest rate only, interest is applied monthly on declining balance method (same as in question 1) Tenure% 1 2 3 4 5 6 7 8 9 10 11 12 Distribution 5.00% 5.00% 10.00% 2.00% Sl.no 1 2 3 A 5.00% 25.00% 2.00% 2.00% 15.00% 2.00% 2.00% 25.00% Answer the following question (complete the empty table) 1,00,000 15% 1.25% Disribution Amount Balance outstanding at start of period 1,00,000 5000 5000 10000 2000 5000 25000 2000 2000 15000 2000 2000 25000 1 what will be the balance outstanding of the whole portfolio at the end of every month 2 What is the payment received every month 3 What is the principal paid and interest paid every month Payment received (EMI amount) Principal paid Interest paid Balance outstanding at end of period

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.