# Building Your Ers List Video Formula For High Value Offers Book Equity Per Share Straight Line Method Calculator Calculate Equation Depreciation Market Expense Equipment Investing

Finance Formulas / July 19, 2018 / Briana Leonard

## Nominal Gdp Formula

### Midpoint Formula Microeconomics

#### Profitability Formula

##### Retail Margin Formula
###### Inflation Rate Formula Gdp

When investors buy bonds, they essentially lend bond issuers money. In return, bond issuers agree to pay investors interest on bonds throughout their lifetime and to repay the face value of bonds upon maturity. The money that investors earn is called yield. Investors do not have to hold bonds to maturity. Instead, they may sell them for a higher or lower price to other investors, and if an investor makes money on the sale of a bond, that is also part of its yield.

For example, suppose Net Operating Income (NOI) is \$120,000 per year and total debt service is \$100,000 per year. In this case the debt service coverage ratio (DSCR) would simply be \$120,000 \$100,000, which equals 1.20. It’s also common to see an "x" after the ratio. In this example it could be shown as "1.20x", which indicates that NOI covers debt service 1.2 times.

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