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Bonds Essay Topics & Paper Examples

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 Bond Portfolio. With an Immunized Portfolio, the duration and convexity of the assets is set to match the duration and convexity of the liabilities. The PV of the assets is set greater than the PV of the liabilities. For small…

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 growth of market activity. In addition, there is lack of sufficient infrastructure for issuance of private sector debt (Jeanneau and Tavor, June, 2006, p. 51). In Latin America economies there is a source of financing constituted by domestic bond markets…

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 choice for growing wealth. This demand coupled with advances in trading technology has opened up the markets so that nowadays nearly anybody can own stocks. Holding a company’s stock means that you are one of the many owners (shareholders) of…

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 mainly rests between equity and debt financing. Corporate bonds form part of debt financing and are usually attained by firms in order to financing capital projects of a long-term nature. Several theorists contend that bonds are beneficial to the value…

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 that affects the level of gain or loss in investing short term and even long term bonds. Answer 1f Well, corporate bonds are being subject to the condition of the demand and supply of bonds that corporations are trading with….

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 like most companies, Home Depot has had its share of challenges. In 2002, the reputation of Home Depot was wavering. A new chief marketing officer, John Costello, arrived and had big plans to help improve the website, as well as…

´╗┐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 7 we get 21/7 : 133/7 = 3 : 19 And the ratio for Mom is 24 : 152 By dividing both values by 8 we get 24/8 : 152/8 = 3 : 19 The simplified “foot-to-height” ratios are now:…