Bonds Essays

Bonds_ Description and Illustration

Every organization needs money in order to be able to finance their projects. In business companies there are two main sources of finance available, equity and debt. It is in the best interest of financial managers to select finance mediums that maximize shareholders wealth and improve the value of the firm. In the assignment our scope is to describe the latter finance mediums and outline its distinguishing characteristics. 1. 1 Corporate bonds The choice of long-term financing for a corporation…

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Domestic Bonds Markets in Latin America_ Achivements and Challenges

For the past few years domestic bond markets in Latin America have significantly expanded. There have been much progress made but susceptibility associated with refinancing risk stands out and a secondary market continues to suffer from low liquidity. In Latin America domestic bond markets have remained underdeveloped calling for more structural and policy barrier. There have been poor records on macroeconomic management with no expansion and deep investor base. There is also no regulatory embargo which prevents primary and secondary…

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Eurobond

Bonds, mutual funds and stocks are the most prevalent asset categories in business, thus they attract mainly the market’s attention. But other significant investment prospects must also b kept in mind by an investor like futures, options, and currencies. Even though these types of investments are quite complicated and usually aimed at experienced investors, it’s very important to understand how they work or function to enable an investor to decide if these types of investments would play a role in…

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Fixed Income Securities

1. Briefly explain why many corporations prefer to issue callable long-term corporate bonds rather than noncallable long-term bonds. There are three main reasons why a corporation may be interested in calling a bond. * Interest rated have fallen, so they can refinance at a lower rate. * Credit quality has improved, so they can refinance at a lower rate. * Assets have been sold, so money is available to pay off debt. 2. Briefly explain the idea behind an Immunized…

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´╗┐allie Measured Her Foot

Allie measured her foot and it was 21cm long, and then she measured her Mother’s foot, and it was 24cm long. “I must have big feet, my foot is nearly as long as my Mom’s!” But then she thought to measure heights, and found she is 133cm tall, and her Mom is 152cm tall. In a table this is: The “foot-to-height” ratio in fraction style is: So the ratio for Allie is 21 : 133 By dividing both values by…

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Bonds and Stocks

Considering the results in part c and d, I could say that there is a 50/50 chance of gaining or losing from investing in short term bonds. Like for instance, the case of bond no. 1, by changing the interest rate it would also mean that its level of yield varies alongside with the interest rate. The gain or loss on investing bonds depends on a lot of factors and interest rates of financial institutions is one of those factors…

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Home Depot Case Study

Bernie Marcus and Arthur Blank opened the first Home Depot in Atlanta, Georgia in 1979. They had big plans for the hardware and home improvement industry. Today, Home Depot is extremely successful with over 22 million customers shopping weekly and 66 billion in revenue, which makes them the largest home improvement retailer in the world. Home Depot employs over 300,000 people and operates over 2200 stores in the US, Mexico, Puerto Rico, China, the Virgin Islands, Guam and Canada. Just…

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Stocks & Bonds

Plain and simple, stock is a share in the ownership of a company. Stock represents a claim on the company’s assets and earnings. As you acquire more stock, your ownership stake in the company becomes greater. Whether you say shares, equity, or stock, it all means the same thing. Over the last few decades, the average person’s interest in the stock market has grown exponentially. What was once a toy of the rich has now turned into the vehicle of…

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