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The model assumes constant growth of dividends. The required rate of return is the discount rate. Next year's dividends are the starting point upon which the dividend growth is calculated and brought back to present value. The problem with using this model is that it assumes that the market does not ascribe any value to the potential for capital gains. Many investors seek capital gains (indeed, if stock prices were explicitly tied to dividends, this is the only way they would make money as the stock price would be the present value of future cash flows).
The model also assumes a current dividend, which many companies do not offer. They merely re-invest their profits. If a future dividend is assumed, and the value of the stock is theoretically derived from those future cash flows, there must be an assumption of when a dividend will be paid and for how much.…
Works Cited
Bond calculator from Smartmoney.com. Retrieved July 7, 2008 at http://www.smartmoney.com/onebond/index.cfm?story=bondcalculator
No author. (2006). Yield Curve. Investopedia. Retrieved July 7, 2008 at http://www.investopedia.com /terms/y/yieldcurve.asp' target='_blank' REL='NOFOLLOW'>
Bond Selection
A "make-whole" call allows the issuer of a bond to pay off the bond early. The payment to the bondholder is based on the net present value of the future payments remaining on the bond (Investopedia, 2012). This provision does not necessarily make the investors whole. The investors receive the net present value of the future payments on the bond. For the investor, the discount rate used to calculate the net present value should be the same rate at which the investor can re-invest those funds with the same risk level. In many cases, however, the discount rate used for the NPV payment would either be written into the provision, or would be determined by the bond issuer. Thus, the discount rate could be a higher or lower than the reinvestment rate of the investor. So while there is no guarantee that this provision would fail to make…
Works Cited:
Investopedia. (2012). Make whole call provision. Investopedia. Retrieved February 12, 2012 from http://www.investopedia.com /terms/m/make-wholecall.asp#axzz1m6xHDhx6' target='_blank' REL='NOFOLLOW'>
Bonds
Nora Chavez, the former finance manager for the city of San Antonio, Texas and current Board member to the energy company in San Antonio presented a process for the issuance of general obligation bonds. Her area of expertise was extolled upon the fact that she now is employed by an Investment Banking firm that handles general obligation bonds on a consistent and continuing basis.
Chavez, first explained to her audience that a municipal bond, and in this case she focused on general obligation bonds, is issued by cities, states, and public entities in search of long-term capital improvement dollars to fund projects such as roads, buildings, and other major projects. She emphasized the fact that each project, and the issuance of bonds to pay for the projects, had to first be approved by voters. Additionally, issuing general obligation bonds also meant that the taxing entity charged with the issuance…
Iacobucci and Triantis clarify tat any type of corporation wit legal personood qualifies to issue debt as long as it can own property, enter contracts and be sued.
Corporates can be issued in bearer form, were te older of te actual certificate is required to update information periodically wit te trustee or issuer, or as "registry" bonds, wit te owner named but wic carry no material coupons. "Book entry" bonds reside in a central securities depository and are registered wit te broker, wo ten assigns interest to te owner's brokerage account. Corporate bonds can be unsecured "debentures," or backed by specific assets identified in te indenture. First-mortgage bonds are backed by lien against real estate owned by te debt-incurring firm; collateral trust issues are backed by oter financial assets owned by te corporation, and "Equipment Trust Certificates" are tied to large real assets oter tan real estate. All tese types…
http://apps.finra.org/investor_information/smart/bonds/306000.asp
9. Justyna Franc-Dabrowska, "Does Dividend Policy Follow the Capital Structure Theory?," Managing Global Transitions 7, no. 4: 367 -- 382, p. 368. Rodolfo Apreda sets out the historical development of the theory of capital structure from Modigliani and Miller in 1958 to his own proposed adjustment for legal risk in a particularly clear and succinct presentation in "Cost Of Capital Adjusted For Governance Risk Through A Multiplicative Model Of Expected Returns," University Of Cema Center for the Study of Public and Private Governance, Working Paper Series, November 2008, number 383. papers.ssrn.com/sol3/papers.cfm?abstract_id=1305220. The Federal Reserve Bank of San Francisco (Simon Kwan, "Capital Structure in Banking," FRBSF Economic Letter 2009-37 (7 Dec. 2009) clarifies that evaluation methodologies continue to evolve and there may be conflicting decision thresholds under simultaneous but varying evaluation schema.
10. Iacobucci and Triantis (2007), ibid.
This does not diminish the logic of his arguments, though. Fonagy is very clear and direct when making a link between aspects of the infant relationship during the attachment phase and later adult behaviors and personalities, and these show a clearly observable and empirically founded cause-and-effect relationship, for the most part. The development of the theory of mind," for instance, is clearly established by the experiments Fonagy details in the article, and its implications on the parent-child relationship -- especially in the sense that the parent's observational capacity of the child's mind is important to the formation of the theory of mind -- are clearly drawn. So, too, are the recommendations Fonagy makes for adjusting parenting styles based on his findings.
Despite a slight hesitation in wholeheartedly accepting Fonagy's conclusions, they still have a very high degree of relevance and utility for social work practice. This utility is twofold. First,…
When one atom gives up or loses an electron, the atom will reduce in size. When an atom gains or receives an electron, the atom will grow in size. Ionic bonds lead to the formation of crystalline solids with high melting points and can be dissolved in water and other polar solvents. The ionic compounds formed through bonding are always solid and are good conductors of electricity.
Ionic bonds are formed when a metallic element on the Periodic Table donates one or more electrons and forms a positive ion, or cation, and has a stable electron configuration. These positive ions enter a non-metallic element causing it to form a negative electron, or anion that has a stable electron configuration. Electrostatic forces attract cations and anions to each other. Ionic compounds include NaCl, or sodium chloride commonly known as table salt, and MgO, also known as magnesium oxide.
Covalent bonds do…
Reference List:
Decelles, P. 2001. "Chemical Bonds." The Entangled Bank, Dr. Paul's Virtually Biology Show.
Web. Retrieved from
To determine the degree to which the bonds of a single company, for example Champion International, are correlated with the market, we must follow the same method as was used for the Vanguard portfolios. The returns on the different Champion bonds must be gathered, as much the returns on the market for the time period studied. e are seeking to determine a beta for the debt. A regression analysis will reveal this beta. The beta will then be applied within the context of CAPM, to give an expected return.
hen the beta is very low, this indicates that idiosyncratic risk is more important in explaining the expected return of the bond. The expected risk, as derived from CAPM, should be evaluated against the expected yield of the bond as priced by the open market. The degree to which the expected yield differs from the expected return as calculated using CAPM…
Works Cited:
Gebhardt, William R.' Hvidkjaer, Soren; Swaminathan, Bhaskaran. (2004). The Cross-Section of Expected Corporate Bond Returns: Betas or Characterstics? Journal of Financial Economics. Vol. 75 pp85-114.
Obligation Bonds
Two types of municipal bonds exist, revenue bonds and general obligation (GO) bonds. General obligation bonds offer investors a relatively safe investment opportunity while providing states and local governments with funds for community improvement. These bonds are debt instruments issued by states and local governments to raise funds for public works. General obligation bonds are backed by the full faith and credit of the issuing municipality. That is, the municipality commits its full resources to paying bondholders, including general taxation and the ability to raise more funds through credit. The ability to back up bond payments with tax funds is what makes GO bonds distinct from revenue bonds, which are repaid using the revenue generated by the specific project the bonds are issued to fund.
General obligation bonds give municipalities a means to raise funds for projects that do not provide direct sources of revenue such as roads,…
Crystalline solids with high melting points are formed through ionic bonding. These crystalline solids can be dissolved in water or other polar solvents. Ionic compounds are solid and good conductors of electricity (Ophardt, 2003).
Additionally, ionic bonds are formed when a metallic element gives up one or more electrons thus forming a positive ion. A positive ion is also known as a cation and has a stable electron configuration. Cations enter non-metallic elements and cause it to become a negative electron. These negative electrons are also known as anions and also have a stable electron configurations. Electrostatic forces attract cations and anions to each other. Examples of ionic compounds include calcium chloride, CaCl2, and potassium oxide, K2O (Clark, 2000).
Covalent bonds, on the other hand, do not give up, gain, or transfer electrons, but rather share electrons equally. Covalent bonds form between atoms in a compound when atoms have a…
Reference:
Clark, J. (2000). "Ionic (Electrovalent) Bonding." Chemguide: Helping You Understand
Chemistry. Retrieved from
Decelles, P. (2001). "Chemical Bonds." The Entangled Bank, Dr. Paul's Virtually Biology
Show. Web. Retrieved from
Value of Money: Bonds
Present value, future value, and the discounted value of a stream of future revenues form the fundamental basis for one of the crucial underpinnings of finance dynamics; the time value of money. While the broad notion of the concept is the tenet that "all things being equal, it is better to have money now rather than later" (Carther, S. September 1, 2008); this posit allows for a deeper and strategic insight into the world of finance, investment, and capital budgeting through analysis of the relative value of a dollar at a given time. In this context there is utility in analyzing the present and future value of a $2,000 Comcast bond issue in comparison with rivals such as AT&T, T-Mobile, and Verizon Communications.
How Much Would You Pay for This Bond Today?
In the telecommunications industry, Comcast is a major player in providing access and content…
References
Carther, S. (September 1, 2008). Understanding the Time Value of Money. Investopedia.
Retrieved January 8, 2012 from http://www.investopedia.com /articles/03/082703.asp#12990857254822&close
CNNMoney.com. (2011). Fortune 500. Comcast. CNNMoney.com. Retrieved January 8,
2012 from http://money.cnn.com/magazines/fortune/fortune500/2011/snapshots/5035.html
For example, if the Fed sees inflation as a risk going forward, the market will place a weighting on that statement, allocating some form of increased interest rate to the future cash flows.
At the time of course, the exact implications of the Fed's comments are unknown. They imply that rates may move in one direction or another, but they are not an actual movement and the Fed reserves the right to change its mind before it meets again. The bond market is thus working with imperfect information. This can lead to general price movements but of unknown quantity. Over time, a reasonable correlation can be established, such as the elasticity of bond prices in relation to, for example, strong warnings from the Fed about inflation. Such a correlation can be drawn with a large enough sample size that it can be used in bond prices.
Overall, though, the exercise…
Works Cited:
No author. (2009). Advanced Bond Concepts: Bond Pricing. Investopedia. Retrieved April 29, 2009 from http://www.investopedia.com /university/advancedbond/advancedbond2.asp
No author. (2009). The Grand Illusion. The Economist. Retrieved April 29, 2009 from http://www.economist.com/finance/displaystory.cfm?story_id=13240822
Heakal, Reem. (2009). Forces Behind Interest Rates. Investopedia. Retrieved April 29, 2009 from
Bond-buyers are also traditionally older and might have been more leery about investing in a new technology such as the Internet during the 1990s.
The choice of these companies to pay a higher rate of return to compensate for the greater risk would have defeated the purpose of the corporation issuing bonds in the first place, as what makes the issuing of bonds so attractive is that the interest rates on bonds that corporations must pay investors are traditionally lower than rates for most other types of borrowing ("How Corporations Raise Capital," U.S. Department of State, 2007). For young, untried companies like the Internet companies of the 1990s this would not necessarily be the case, thus it made more sense to generate revenue through issuing common stock, as if the company faltered for a time, this would not have to be repaid, and buyers of stock were the right, less-risk…
Works Cited
Comparing Stocks, Bonds, and Cash Equivalents." American Funds. 6 Jul 2007. http://myretirement.retire.americanfunds.com/planning/investing/comparing.htm
How Corporations Raise Capital." U.S. Department of State." About.com. Jul 6, 2007. http://economics.about.com/od/smallbigbusiness/a/corp_capital.htm
ond Review
Compare and summarize a separate article on why companies or individuals invest in bonds.
There are a variety of reasons as to why a corporation or an individual will purchase bonds. Some of the most notable that were previously discussed include: safety, steady returns and they are providing diversification to the portfolio. To determine the accuracy of these findings we will compare these ideas with those from a piece literature that will be examined. Once this takes place, it will provide specific insights about the overall advantages that bonds are offering to: corporations and individuals.
The article that we will be examining is titled the Tax Advantages of Pension Fund Investments in onds. This was selected, because it can provide specific insights about why this particular asset class has become so popular. At the same time, it will offer historical insights about the advantages that bonds have over…
Bibliography
Black, Fisher. "The Tax Advantages of Pension Fund Investments in Bonds." NBER Working Paper, 1980. Web. 15 May 2011.
50) to 2097 -- the price of this bond is of $58 (Yahoo Finance, 2009).
Despite their past low popularity, the investors are now beginning to seek more vividly the Ford preferred stock (F-PF) and this is generally explained by the fact that the popularity of the common stock has suffered demises. The company officials have decided to allow owners of common stocks to exchange them with preferred stocks and vice versa, in order to increase investor satisfaction. The preferred stock is being traded at a value of $38.86. Preferred stocks are among the riskiest investments and the specialized advice is that they be kept for long periods of time, but in small amounts. Additionally, it is necessary to diversify the portfolio and the preferred stock should not make up more than one percent (Neubert, 2007).
eferences:
Neubert, D., 2007, Ford Preferred (F-PS): Used Only with Diversification, The Panelist, http://thepanelist.com/Neubert%27s_Trades/Neuberts_Trades/_20070805502/last…
References:
Neubert, D., 2007, Ford Preferred (F-PS): Used Only with Diversification, The Panelist, http://thepanelist.com/Neubert%27s_Trades/Neuberts_Trades/_20070805502/last accessed on July 8, 2009
2009, Bond Screener at Yahoo Finance, http://reports.finance.yahoo.com/z1?is=ford last accessed on July 8, 2009
2009, Investopedia, http://www.investopedia.com last accessed on July 8, 2009
For Your Eyes Only
"Bond had time for these reflections because M. seemed to be having difficulty in coming to the point. Bond had been asked if he had anything on at the moment, and he had replied happily that he hadn't and had waited for Pandora's box to be opened for him. He was mildly intrigued because M. had addressed him as James and not by his number -- 007. This was unusual during duty hours. It sounded as if there might be some personal angle to this assignment -- as if it might be put to him more as a request than as an order. And it seemed to Bond that there was an extra small cleft of worry between the frosty, damnably clear, grey eyes. And three minutes was certainly too long to spend getting a pipe going."
This passes introduces Bond to the reader in the…
Finance
The formula for valuing a bond is:
P0="t"1nIi (1+i) t+PVn (1+i) n=Presentvalueofcouponpayments+Presentvalueofbond'sparvalue
In the scenario given, n=10 in order to get a value of $1,277.98. This price is at a premium, meaning above the par value. Bonds are price above par value when the interest rate on the bond is higher than the interest rate in the market. When the rate in the market is higher than the coupon rate on the bond, the bond will have a price below par value. So in this case, with the price of the bond being $1,277.98, that assumes that for the next ten years, this bond is going to pay a rate higher than what the market rate is at present. Because the bond holder is receiving a premium, the bondholder must pay for that premium. This can present a problem for the bond holder, in that they will receive back…
References
Curtis, G. (2014). Six biggest bond risks. Investopedia. Retrieved May 8, 2014 from http://www.investopedia.com /articles/bonds/08/bond-risks.asp' target='_blank' REL='NOFOLLOW'>
Bond
In general, the price I would pay for this bond will depend on the risk that the company has. My personal risk preference is that I am risk averse. I expect inflation to continue to be very low over the next year, but increasing slightly from current levels. The prevailing interest rates are low, which means I would expect the corporate bond rates to also be quite low. The company I have selected is Johnson & Johnson, and I do not believe that there is any default risk with this company. They are a large, stable company with a large cash position and stable earnings. They have a wide range of products, meaning they are well-diversified. In addition, that company has increased its earnings steadily over the past several years. They compete in a number of different industries as well. Thus, there is little risk that Johnson & Johnson…
Finance
The WSJ Treasury rate table is as follows. Note that WSJ doesn' t list the 15 and 20-year Treasury rates on its table; Yahoo was used for those instead.
ate
This gives the following yield curve:
This is a normal yield curve. The yield curve reflects the expectations of future interest rates. At present, the yield curve shows low interest rates in the short-term, then an acceleration of rates in the longer term indicating that these rates are expected to rise slightly in the next few years, before the curve starts to flatten out at its tail. This illustrates the normal relationship that the longer the term is the higher the rate will be.
The portfolio is as follows:
Coupon
Mat
YTM
Current Yield
Duration
ModD
Treasury
4.125%
15-May-15
0.075%
3.964%
Treasury
3.125%
15-May-19
1.646%
2.918%
Freddie Mac
1.250%
12-May-17
0.692%
1.230%
Federal Farm Credit
2.125%
15-May-23
2.689%
2.225%…
References
Investopedia. (2014). Advanced bond concepts: Duration. Investopedia. Retrieved May 12, 2014 from http://www.investopedia.com /university/advancedbond/advancedbond5.asp' target='_blank' REL='NOFOLLOW'>
Pet Experience
Pet owners often describe the connection between themselves and their animals as something similar to the bond between a parent and their child, and while this can be seen as an exaggeration, for anybody who has loved and lost a pet the comparison is appropriate. During my first year of college I experienced the loss of a longtime pet, as my 14-year-old cat Jameson succumbed to old age after a long life. Not being there when he passed away was a bit painful, because Jameson was "my" cat in a sense, with my older siblings each having their own from a litter of kittens my parents came across one day way back when. Knowing that he exceeded the expected lifespan for a housecat was a point of comfort, but the loss hurt nonetheless, because I have a feeling Jameson was likely looking around the house for me during…
Finance
Question 1.a) Bond ratings encompass a wide range of elements related to the credit risk of the firm. Moody's notes that bond ratings include elements of default probability, loss severity, "financial strength" and "transition risk" (Cantor & Fons, 1999). The authors note that within the same sector, bonds of the same rating tend to be comparable both with respect to overall credit quality and specific credit quality characteristics. Over different segments of the bond market, this is not necessarily the case. Bond ratings tend to take in factors like the balance sheet strength of the firm, as well as the expected loss in the event of a default. Thus, the type of assets that the firm holds is an important characteristic. The transition risk reflects the likelihood that the firm will experience outright default without transitioning down through the different risk categories. Firms that are almost assuredly going to…
Works Cited:
Cantor, R. & Fons, J. (1999). Rating methodology: The evolving meaning of Moody's bond ratings. Moody's. Retrieved April 27, 2012 from http://www.moodys.com/sites/products/AboutMoodysRatingsAttachments/2000400000300541.pdf?frameOfRef=corporate
Investopedia. (2012). Net present value. Investopedia. Retrieved April 27, 2012 from http://www.investopedia.com /terms/n/npv.asp#axzz1tFv4YkMI' target='_blank' REL='NOFOLLOW'>
Bond no longer needs to rely on the past glories of the British empire to justify his disregard for local sovereignty and governance, because the omnipresent threat of terrorism serves as justification enough. Highlighting this point is the fact that the man Bond kills at the embassy is a freelance bomb-maker, the kind of ideology-free terrorist par excellence, at least when it comes to villains one can kill without many ethical qualms. Put simply, the all-encompassing need to defeat terrorism, as advanced by the United States and adopted by its allies (including Great Britain), serves to justify any act, whether one is talking about the kidnapping and torture of detainees in real life or the extraterritorial murder of someone in a foreign embassy in Casino Royale.
Charting the use of extraterritoriality in James Bond stories, across media platforms and through time, demonstrates how the character functions as a kind of…
Works Cited
Campbell, Martin, dir. Casino Royale. 2006. Film.
EA Redwood Shores. James Bond 007: Everything or Nothing. Electronic Arts, 2003. Xbox,
Playstation 2, Gamecube.
Fleming, Ian. Diamonds Are Forever. New York: Random House, 2012.
Nevertheless, the heavy reliance on such debt led in some cases to severe difficulties, as illustrated by the Mexican tequila crisis of late 1994 and the Brazilian crisis of 2001. In Mexico the problem happened when investors became increasingly reluctant to roll over their short-term peso-denominated cetes and instead shifted their funds to short-term dollar-indexed tesobonos. This shift to dollar-indexed liabilities supplied a temporary respite for the government but the short-term nature of outstanding securities also meant that the transformation in the structure of debt towards tesobonos was extremely quick. The rapid withdrawal of foreign investment from the domestic market at the end of 1994 and the resulting sharp drop in the Mexican peso resulted in an explosive growth in the peso value of dollar-indexed government liabilities, thereby adding a fiscal dimension to the external crisis (Jeanneau and Tovar, n.d.).
The local government bond market has expanded rapidly in Mexico…
References
Dalla, Ismail and Hesse, Heiko. (2009). Rapidly growing local-currency bond markets offer a viable alternative funding source for emerging-market issuers. Retrieved April 9, 2010,
from Vox Web site: http://www.voxeu.org/index.php?q=node/4081
Jeanneau, Serge and Tovar, Camilo E. (n.d.). Financial stability implications of local currency bond markets: an overview of the risks. Retrieved April 9, 2010, from Web site:
http://www.bis.org/publ/bppdf/bispap36e.pdf
Annie's Investment In Atelier's Bonds
Call price =$1,080
Call price = Face value+ interest (Extra payment to the bond holder)
Interest Income = Call Price - Face Value = $1,080 - $1,000 = $
After 5 years, Stock price = $ (30 x 50) = $1,500 If she sells the stock at the end of the 5 the year, then she will get income from sale of Stock = $ (1500-1000) = $500. Therefore, at the end of 5th year, Stock price will be greater than the Call Price and as such, the can convert the bonds into common stock.
Converting the bonds is a safe option for Annie since common stock is a safe, income-producing alternative to bonds. While convertible bonds give up some of the upside of a stock, the dividend component and the reduced volatility make them attractive investments for retirement accounts and accounts with a need…
Risk-Free
Government bonds are called risk-free because they will be paid back. he underlying assumption is that the U.S. reasury can always print more money in order to finance the payback of these bonds. hat does not by any means make the bonds truly risk-free, but they are guaranteed to return face value. here are actually a few different ways in which government bonds are risky.
A recent change to the more orthodox view of government bond risk is that U.S. government bonds were downgraded in 2011, something that had never happened previously. his has not changed the market view of U.S. government paper, but it does imply that, according to one rating agency at least, the bonds of some other governments are less risky than the bonds of the U.S. government. hat said, the risk conditions of U.S. bonds have not changed. hey are still considered risk free because…
The risk of default in U.S. government bonds, aside from political shenanigans like the debt ceiling debacle in the summer of 2011, lies largely with the federal budget. This is known as sovereign risk. The sovereign risk of the United States, and several other developed nations, is very low. With other countries, however, there are genuine budget issues that make default a possibility. In the Eurozone, for example, nations like Greece are struggling to meet their debt payments. With Greece, there is no ability for the government to print more money in order to cover its obligations, and that increases the sovereign risk. Nations that have their own currencies do not have this type of risk, but still have sovereign risk to the extent that they could find themselves one day without enough cash to pay their obligations.
It should be noted that part of the reason that government bonds give a return is not related as much to risk as it is to providing the incentive to invest. Governments issue debt because they need to raise funds. If there was no return given on that debt, nobody would invest. Therefore, there must be some sort of return offered, in order to entice investors. The rate is typically set in regard to the opportunity cost of capital, and the market yield will reflect the market's views about the sovereign risk associated with debt.
Thus, risk free securities are not truly risk free. There is the risk of default, although this risk is very minor. There is the risk as well that the value of the investment will not be much. In the event of hyperinflation, for example, the value of the money might be very low. However, the value will always be paid out because the Treasury can print that money. The interest rate reflects, in addition to an enticement to invest, the combined risk of default and the risk associated with expected future interest rate moves.
Issuance of Bonds Is as Follows:
Long-Term Debt
Cash
This is because we are adding cash to the balance sheet, which is an asset, and we are adding the liability of long-term debt as well. We put debits on the left hand side and credits on the right hand side.
For the interest expense it is as follows:
Cash
Interest Expense
This is because we are debiting cash, and crediting the interest expense column. The balance sheet shrinks as the result of this payment, so there is no offset on the balance sheet, but rather there is on the income statement. There are times when at the cutoff for an accounting period there is accrued interest, so in such instances that might be recorded differently.
An amortized bond is one that has been reduced in value for records on accounting statements (Investopedia, 2013). So this is a bond sold at…
References
AIPB. (2013).Depreciation under GAAP. AIPB Retrieved November 30, 2013 from http://www.aipb.org/pdf/DEPRECIA.pdf
Investopedia. (2013). Definition of amortized bond Investopedia. Retrieved November 30, 2013 from http://www.investopedia.com /terms/a/amortized-bond.asp' target='_blank' REL='NOFOLLOW'>
U.S. Bond Market
I agree with Standard & Poor's (S&P) downgrade of the U.S.'s credit rating. It was motivated by the fact that Congress and the Obama Administration had been unable to come up with a budget or fiscal plan that would stabilize the nation's medium-term debt dynamics. Furthermore, they cited serious problems with U.S. monetary and fiscal policy, which they felt left the United States very vulnerable in a time of high-volatility in the global financial markets (Paletta & Phillips, 2011). In other words, S&P was looking at the federal government's failure to come together and address the serious financial problems facing the nation and anticipating that this failure would lead to some type of gridlock. In hindsight, the nation has experienced exactly that type of predicted financial gridlock. The country is in significant debt and one party is opposed to raising taxes on those who can most afford…
References
Dorning, M., Detrixhe, J., & Katz, I. (2012, July 16). Downgrade anniversary shows investors gained buying U.S. Retrieved September 20, 2013 from Bloomberg website: http://www.bloomberg.com/news/2012-07-16/downgrade-anniversary-shows-investors-gained-buying-u-s-.html
Paletta, D. & Phillips, M. (2011, August 6). S&P strips U.S. Of top credit rating. Retrieved September 20, 2013 from The Wall Street Journal website: http://online.wsj.com/article/SB10001424053111903366504576490841235575386.html
Indian Stock and Bond Markets
Do you think an investment in the Indian stock market is a good long-term investment?
The Indian stock market has experienced a number of fluctuations over the past 20 years or so that would suggest that investors might want to adopt a "wait-and-see" approach before making the plunge into these financial waters. For example, Schmidt and Hersh emphasize that, "The history of the operation of the Indian stock market has been dotted with brokers often unable to meet their commitments, allegations and proved instances of insider trading, and deliberate manipulation of stock prices by bears and bulls" (2000, p. 131). The prices for stocks listed on the Indian stock have experienced a number of highs and lows, with the most significant boom taking place during the period 1993 to 1995; however, although there have been some spikes, there has been a downward trend experienced since…
References
Kumar, R. (2007). Economic growth and volatility in Indian stock market: a critical analysis.
South Asian Journal of Management, 14(2), 47-48.
Schmidt, J.D. & Hersh, J. (2000). Globalization and social change. London: Routledge.
Sen, P., Bahel, N. & Ranjan, S. (2003, July). Developing the Indian debt capital markets:
Finance Discussion
The market for bonds is not always liquid, but the same bond should buy/sell at the same price, if at the same time. If not, this will create an arbitrage opportunity and that arbitrage will align the prices on the different markets where the bond was priced differently. However, at different times, the price can change, based on the underlying factors that affect bond prices (Feldhutter, 2012). One such factor is time. Each bond has a time value, which represents the present value of the future cash flows, and the risk that interest rates will change in that time. Thus, the same bond will see its price change, the closer it gets to maturity, even when the only thing that has changed is the time.
Other changes will also affect bond prices. A change in interest rates will affect the opportunity cost of owning a given bond, leading…
References
Diffen (2015). Stocks vs. bonds. Diffen.com. Retrieved April 11, 2015 from http://www.diffen.com/difference/Bond_vs_Stock
Feldhutter, P. (2012). The same bond at different prices: identifying search frictions and selling pressures.
Investopedia (2015). Why do interest rates tend to have an inverse relationship with bond prices? Investopedia. Retrieved April 11, 2015 from http://www.investopedia.com /ask/answers/04/031904.asp
Morrison, R. (2012). Preferred shares an alternative to bonds, stocks. Financial Post. Retrieved April 11, 2015 from http://business.financialpost.com/investing/etfs/preferred-shares-an-attractive-alternative-to-bonds-stocks
Regardless of one's appetite for risk, it is essential that some diversification of assets is used to prevent 'losing' money by saving money in a bank account alone, although noninsured investments should not be concentrated on one area of the economy, to protect against potential losses.
Even in today's economic climate, investors should allocate some of their funds in safe, but higher-interest bearing sources. These might include certificates of deposits or CDs, which can be allocated into different accounts so the CDs mature at different times, to free up more of the saver's money. These safer investments may also include government bonds of stable governments and corporations, as well as preferred stock for companies that offer this option. Unlike CDs less than $250,000 in value, however, bonds and preferred stocks are not insured by the government.
The concept of the future value of money underlines the importance of saving in…
Domestic debt is also needed for monetary policy purposes including for sterilizing inflows of foreign exchange." (Kahn, 2005) In addition bond markets assist in the provision of interest rates across the maturity spectrum and more efficient pricing of risk. y providing an alternative source of financing they reduce concentration of intermediation in banks. ecause lending can be hedged in the bond market, banks have the ability to lend longer." (Kahn, 2005) Kahn notes that PECC (2004) states general requirements for bond market development which include: (1) the simultaneous development of market width, market depth and market infrastructure; (2) effective coordination among government agencies; (3) close public-private sector partnership; and (4) regulation focusing on maintaining and enhancing transparency and the treatment of taxation. (Kahn, 2005) Kahn concludes by stating that if bond markets are to be development in SSA or in other emerging markets, the role of the state becomes critical,…
Bibliography
Adelegan, O. Janet and Radzewicz-Bak, Bozena (2009) What Determines Bond Market Development in sub-Saharan Africa? International Monetary Fund. IMF Working Paper. Sept 2009. Online available at: http://www.imf.org/external/pubs/ft/wp/2009/wp09213.pdf
Armstrong's Guide to Investing and Doing Business in Botswana (2008) Online available at:
www.armstrongs.bw/.../11%20-%20Doing%20business%20in%20Botswana.doc
Developing Government Bond Markets (2001) International Monetary Fund -- A Handbook. 2001 July. Washington, D.C.
structure' theories by making use of a new method. To achieve this, the case study shapes strategies of bond investment centered on diverse term-structure models to decide the best performing strategy. When making use of a "Manipulation-Proof Performance Measure," the case study attains the finding that in agreement with preceding literature, a pro-active method that is grounded on time-changing term premiums may create the foundation of an effective bond strategy, which outdoes an impartial anticipation inspired passive bond "buy and hold" tactic. Nonetheless, this turns out to be accurate for a previous spell when the literature primarily made this assertion. Later on, the study discovers that the passive "buy and hold" method is considerably superior in comparison to all active bond strategies. Generally, it seems that the impartial expectation model has been the most probable justification of the behavior of the term structure for the duration of more current periods.…
References
Ang, A., Piazzesi, M., Wei, M. (2006). What does the yield curve tell us about GDP growth? J. Econ, 131:359 -- 403.
Cochrane, J., Piazzesi, M. (2005). Bond risk premia. Am Econ Rev, 95:138 -160.
De Bondt, W., Bange, M. (1992). Inflation forecast errors and time variation in term premia. J Financial Quant Anal 27:479 -- 496
Diaz, A., Navarro, E., Gonzales, M., Skinner, F. (2009). An evaluation of contingent immunization. J Bank Finance, 33:1874 -- 1883.
3. hen the expected rate of inflation changes, the expectations for future interest rates also change. An increase in inflation will bring an increase in interest rates, all things being equal. In such a situation, bond prices will go down. If the expected rate of inflation drops, bond prices will increase in anticipation of a potential interest rate cut. The intensity of the price change will depend on the maturity of the bond. Part of the bond's price is determined by its time value, which is the risk of an adverse change in interest rates. Longer bonds have greater interest rate risk, therefore they are subject to more intense changes as a result of changes in the expected inflation rate.
One outcome of this is a change in the yield curve. If inflation is expected to drop, bond prices will increase. This will reduce the yields. Because the long end…
Works Cited:
No author. (2009). Current yield. Investopedia. Retrieved December 12, 2009 from http://www.investopedia.com /terms/c/currentyield.asp' target='_blank' REL='NOFOLLOW'>
bonds or General Obligation Bonds are when an issuer, city, or state issues a bond that is guaranteeing repayment of said bonds by any means necessary, meaning the issuer will use any level of taxation power at its disposal to assure the money is paid back (O'Hara & Wesalo Temel, 2012, p. 42). Along with this idea, the full taxing power, faith, and credit of the issuer are used to back the bonds. So the revenues from each kind of tax like sales taxes, gas, property, and corporate taxes will be used to guarantee bonds. Hence the name general obligation bond because the issuer is generally obliged.
When an issuer has a problem with paying someone back, they must "through any means necessary" gain the funds to pay back the money. This means as mentioned before, raising taxes or other avenues or raising capital. Those that issue GO bonds are…
References
Feldstein, S., & Fabozzi, F. (2008). The handbook of municipal bonds. Hoboken, N.J.: Wiley.
O'Hara, N., & Wesalo Temel, J. (2012). The fundamentals of municipal bonds. Hoboken, N.J.: Wiley.
Hirschi's Social Bond Theory
Hirschi's social bonding theory argues that those persons who strong and abiding attachments to conventional society are less likely to deviate than persons who have shallow or weak bonds (Smangs, 2010). These bonds come in four interrelated forms, the first of which is attachment. Attachment, refers to the level of psychological affection one has for pro-social others and institutions. Parents and schools are of critical importance in this regard. Youths who form close attachments to their parents1 and schools will, by extension, experience greater levels of social control. The second type of bond is referred to as commitment. Commitment stresses the importance of the social relationships that people value, which they would not want to risk jeopardizing by committing criminal or deviant acts. People are less likely to misbehave when they know that they have something to lose. For juveniles, this could mean not wanting to…
References
"Key idea: Hirschi's social bond/social control theory." (NDI). Sage Publications. Retrieved February 11, 2013, from http://www.sagepub.com/upm-data/36812_5.pdf
Smangs, M. (2010, December) Delinquency, social skills, and the structure of peer relations: Assessing criminological theories by social network theory. Social Forces, Vol. 89, Issue 2, 609-631. University of North Carolina Press. Retrieved February 11, 2013, from http://web.ebscohost.com/ehost/pdfviewer/pdfviewer?vid=3&sid=a9dcb4b0-c42c-4f64-8b67-c1a089b82105%40sessionmgr110&hid=108
Mixture, Compounds, Covalent and Ionic Bonds
Describe difference a mixture a compound Suppose a pure substance. How a compound element? What difference ionic a covalent bond? Explain ionic compounds formed a metal left side periodic table reacts a nonmetal side.
Mixtures are composition of two or more substances which are not chemically combined and do not exist in fixed proportions to each other. For instance when you take two components, an iron and Sulphur powder, the two when mixed together can be separated by physical means since they are not chemically combined i.e. with the use, of a magnet. Mixtures have the following characteristics which differentiates it from compounds. They include; mixtures can be disintegrated by the use of a physical method, the substance which form the mixture normally retain their properties, mixtures do not have a sharp melting point, they also have no fixed composition, and lastly a mixture…
References
Myers, R.L. (2007). The 100 Most Important Chemical Compounds: A Reference Guide: Greenwood Press.
Pauling, L. (1988). General Chemistry: Dover Publications.
Zumdahl, S.S. (2007). Introductory Chemistry: Houghton Mifflin.
Zumdahl, S.S., & DeCoste, D.J. (2010). Introductory Chemistry: A Foundation: Brooks/Cole, CENGAGE Learning.
Microeconomics
When the Fed sells bonds, this should:
increase the Federal funds rate.
reduce the reserve requirement.
increase the discount rate.
decrease the discount rate.
Suppose excess reserves in the banking system change from $100 to $110. Other things equal, we might expect this change to:
reduce the discount rate.
reduce the Federal funds rate.
raise the reserve requirement d. reduce the prime rate.
If the Fed funds rate is 6% and Fed's target for the Fed funds rate is 4%, then the Fed is most likely to:
reduce the reserve requirement.
sell government bonds.
raise the discount rate.
raise the reserve requirement.
Suppose that investment is not very responsive to interest rates, so that a sizable increase in interest rates has only a minor effect on investment. In this case, contractionary monetary policy would:
a. have no effect on output.
b. reduce output slightly.
c. reduce output significantly.
d.…
Walt Disney Prospectus
#1 Disney offered a five-year bond at 4.5% for sale. These are classed as Global Notes and they were available in denominations of $2,000 minimum and $1,000 after the first $2,000. The notes cannot be redeemed prior to maturity, but the company can redeem at any time at fair value. These are fixed rate notes at 4.5% and they will be paid out semi-annually. The global notes means that they are cleared both in the United States and in Luxembourg, allowing the company to tap the European financial markets. One of the main underwriters, Deutsche Bank, is partly responsible for the European part of the issue. The debt is, however, wholly denominated in US dollars.
There are several steps that Disney undertook in order to enhance the marketability of the debt securities. First, the price and conditions of the issue need to be favorable for the market…
References
Disney Form 10-K for 2010. Retrieved May 15, 2017 from https://ditm-twdc-us.storage.googleapis.com/2015/10/2010-Annual-Report.pdf
Ingram, M. (2015) Six years later, Disney's acquisition of Marvel looks smarter than ever. Fortune. Retrieved May 15, 2017 from http://fortune.com/2015/10/08/disney-marvel/
Walt Disney Company prospectus: Global notes 4.5% due 2013. In possession of the author
12-3) the following reflects the amount and rate of return on the investment based the following formula:
Return = (500-P)/P
Price
Int Payment
Int Rate
As the price rises, the return on the bond diminishes. The bond that is priced today at $500 returns nothing to the holder for their time, but the bond that returns $125 over the year has a high rate of return.
12-5) This is not correct. When aggregate demand for money increases the interest rate, there will be a reduction in money demand, but the relationship between the two is not perfect. The decline in demand for money will not be sufficient to bring the interest rate back to equilibrium without assistance. The Fed must actively move to decrease the money supply in order to bring the interest rate back to equilibrium. The speaker is assuming that the demand for money is related only to…
Technical Systems
Persistent Technicals Inc. (PTI) established in 1985, is a fast-growing dominant leader in system automation that specializes in the BOT (Build-Operate-Transfer) methodology suited primarily for the municipal industry. With over 7,000 jobs, in its almost three decades of operations and experience, PTI commands a domineering presence in the industry it operates. Its business acumen, technological expertise, range of sactivity and financials are much better than most of the other companies that compete in the industry.
Engineering services provided by PTI include process information management, distributed control systems (DCS), programmable logic controllers and SCADA, project management, along with human machine interface (HMI), power monitoring,, the design and programming of remote telemetry, instrumentation, variable speed drives, motor and motion control, temperature control, and. It also provides for installation, commissioning and training, Custom panel fabrication, and technical on-site services.
The company has good insight of smaller third-party collaborations whose help is…
References
Technical Systems, Inc. (n.d). Retrieved from: http://www.wennsoft.com/uploads/casestudies / technical%20systems%20job%20cost%20and%20service%20management%20software%20case% 20study_20100224012352.pdf
Federal Reserve buys government bonds, it increases the overall money supply in the nation and thus pursues an expansionary monetary policy. Through buying bonds the Fed increases the amount of reserves in the banking system, leading to more loans and hence more deposits. Since deposits are part of the money supply, the money supply increases. This is often done in combination with lowering interest rates to speed up the economy by infusing it with a larger available supply of money to spend upon consumer goods.
Conversely, by selling government bonds and reducing interest rates, the Federal Reserve reduces the overall money supply. The money supply is determined by the amount of currency and bank deposits held by the public, as well as the amount of reserves held by banks. When prices and inflation are going up, the Federal Reserve tries to slow down the economy by making fungible money scarcer,…
watching a James ond film, one often wonders. If the ond character were real, would he be able to experience a traumatizing situation -- killing a villain or escaping with his life -- and then straightening the lapels of his dinner jacket proceed to seduce a beautiful woman? While ond's celluloid heroics transport us as long as the movie lasts, we know that it is unrealistic, and comes from the imagination of Ian Fleming, who like most authors and novelists, probably sat at his desk tapping away at his Remington, letting his mind do the wandering or the conjuring, as was necessary for the plot.
Ernest Hemingway, we know, has lived his novels. He was larger than life, and he lived larger than life E.L. Doctorow, in a tribute to Hemingway, describes a day in Florida when Hemingway persevered after hooking a huge marlin to snag and capture it. ut…
Bibliography
Baker, C. (1963). "Ernest Hemingway: The Writer As Artist." Princeton: Princeton
University Press. p. 127.
Contemporary Literary Criticism (2000). "Ernest (Miller) Hemingway: A brief review of the author's life, works and critical reception." Contemporary Literary Criticism
Gale Literary Database. Retrieved on 6 April 2000 at http://www.galenet.com/servlet/GLD/
Treasury Securities and Business isks
What is meant by "risk-free?"
isks are unplanned occurrences that affect the normal occurrences within a business or any other project. A risk-free scenario is anything that occurs without the possible occurrences of risks. Therefore, in an economic undertaking, risks are occurrences that occur contrary to the planned business or economic programs (Garbade, 2012). Thus, a risk-free status refers to a business occurrence where the established safety measures work towards alleviating the possibility of risk occurrences. Everything that is done incorporates many risks in place. isks occur within a specified framework of work that is contrary and unplanned within an economic setup. As much as risks are founded within any business, businesses will resort to possible avenues where they are not going to encounter or meet any possible risks that will work against their business strategies and plans. In a free rate of business, a…
References
Bhansali, V. (2011). Bond Portfolio Is Investing and Risk Management: Positioning Fixed Income Portfolios for Robust Returns after the Financial Crisis. New York: Mcgraw-Hill.
Garbade, K. D. (2012). Birth of a Market: The U.S. Treasury Securities Market from the Great War to the Great Depression. Cambridge, Mass: MIT Press.
Apple: Borrower Analysis
The size of the loan that Apple (AAPL) is procuring is $6.5 billion dollars in corporate bonds (Colt, 2015) with the intention of raising another $1.6 billion through the sale of Australian currency bonds in the form of seven-year notes (Purvis, 2015). The intention of the loan is to lift share holder value through the increase of dividend payments while avoiding hefty tax payments by repatriating its stockpile of cash ($145 billion to be exact) held in offshore accounts (Ehrman, 2013).
Thus, this transaction is useful to Apple because it allows the company to maintain its significant cash reserves and to boost its stock price by giving investors greater incentive to buy. Some critics might argue that the loan does nothing to really boost the company's fundamentals (in terms of development projects) but in an age where fundamentals are increasingly insignificant (which is what happens when QE…
References
Colt, S. (2015). Apple just took out a $6.5 billion loan even though it's sitting on $178
billion in cash. Business Insider. Retrieved from http://www.businessinsider.com/why-apple-raised-65-billion-in-debt-2015-2
Ehrman, D. (2013). Does Apple need a loan for billions? Motley Fool. Retrieved fom http://www.fool.com/investing/general/2013/04/27/does-apple-need-a-loan-for-billions.aspx
Purvis, B. (2015). Apple raises $1.6 billion in record corporate bond deal. Bloomberg.
Raising Corporate Capital Issues
It appears fairly clear that the most advantageous means of raising capital for a corporation is to sell common stock. However, it is critical to realize that there are other things that a corporation must do in addition to selling common stock to make this method provide the degree of efficacy that the corporation desires. The reason that selling common stock can help to raise capital for the corporation is that it is possible to get many different people to invest in the company through this means. However, these individuals will tend to do so in greater numbers and in ways that continue to benefit the corporation if the company itself excels. Specifically, the company must simultaneously focus on its core business and keep abreast of its competition so that it can continue to generate revenue and, hopefully, provide the sort of profit margins that are…
James Bond: A transmedia character
"This was going to be bad news, dirty news, and he didn't want to hear it from one of the Section officers, or even from the Chief of Staff. This was to be murder. All right. Let M. bloody well say so."
For viewers accustomed to the James Bond of cinema, reading The Living Daylights by Ian Fleming may come as something of a surprise. In contrast to the flashy, urbane, womanizing Bond of film, Fleming's secret agent seems much more subdued. Bond is first shown at a firing range -- although Bond is a crack shot, his prowess with a pistol seems very tame compared with the fantastic gadgets he has been saddled with in various films. When he meets with M, there is no flirtatious banter with Miss Moneypenny. It is clear that this Bond is a Cold War spy, with a serious…
James ond is presently one of the principal sexual concepts that the film puts across. Daniel Craig's ond is no longer seen as a very effective killing tool, as it shown as an object of admiration.
Craig's physical appearance is no longer a crime deterrent, as it is actually used with the purpose of impressing viewers. This ond is no longer yelling, as he speaks in a gentle voice and some might even be inclined to consider that he has become more sensitive. When considering ond's overall development, it appears that society is becoming more and more obsessed with the masculine body image and less preoccupied with manliness as an intellectual concept.
The masses in the 60s saw masculinity as an idea that needed to be exploited and largely believed that men had to be particularly aggressive in order to truly be appreciated by individuals around them. However, trends changed…
Bibliography:
Caunce, Stephen, "Relocating Britishness," (Manchester University Press, 2004).
Lehman, Peter, "Masculinity: Bodies, Movies, Culture," (Routledge, 2001)
Pang, Laikwan and Wong, Day, "Masculinities and Hong Kong Cinema," (Kent State University Press, 2005)
Value of Money
My SLP company is Wal-Mart. For me I would pay less than $100,000 for this bond, because I know that the $100,000 face value of the bond is not going to have the same purchasing power in a year as it does today. The value of the bond will therefore be less than $100,000, based on the prevailing interest rate. Wal-Mart is a company with a high amount of cash flow that is quite reliable. Thus it is not expected that Wal-Mart would pay much in the way of interest, maybe 2% per year. This implies the value of the bond would be around $98,000.
The discount rate for this bond, based on a $98,000 price, would be 2.04%, as calculated by ($100,000 -- 98,000) / 98000. This reflects the return that the bond offers to the investor.
Target is a company in the same industry as…
Return on Financial Assets
There are a number of factors that affect bond pricing. The basic bond pricing formula is as follows:
Investopedia
In this formula, the coupon payments, number of payments, interest rate and value at maturity are taken into consideration. The question at hand pertains to bonds that are the same in all characteristics except time to maturity and risk level. The risk of the bond will be reflected in the interest rate and the time to maturity will be reflected in the number of payments remaining on the bond. Initially, it is easy to make a couple of basic assessments. The corporate bond with AAA will be rated more highly than one with BBB. This places BBB (X bond) last. ith a lower time to maturity than bond , the third bond (Y) will have a lower yield to maturity, because the shorter time to maturity will…
Works Cited:
Investopedia. (2011). Advanced bond concepts: bond pricing. Investopedia. Retrieved January 28, 2012 from http://www.investopedia.com /university/advancedbond/advancedbond2.asp#axzz1kmQexa4w' target='_blank' REL='NOFOLLOW'>
However, the coverage of credit ratings in Europe is being considered to a certain extent to be under developed in comparison to that of the United States as a result of the greater enhanced dependence upon bank intermediation. The rating penetration was even found to be quite different even within the quarters of the European Union as a result of the increased prevalence of the different types of financial structures with more or less financial disintermediation. The continuing internationalization / Europeanization of the level of fixed income portfolios however, are being expected to remain as a strong element of demand for the purpose of ratings in the European bond market. Besides, the ratings are also being required by the different regulators in the various areas. Presently, however, the new market-based methods for the purpose of evaluating credit risks have been derived from that of the equity prices, subordinated bond prices…
References
Bohn, John. A. How International Ratings Strengthen Financial Markets. Economic Reform
Today: Banking and Financial Reform. No: 1, 1995. Retrieved at http://www.cipe.org/publications/fs/ert/e15/across.htm . Accessed 14 October, 2005
International Credit Rating Agencies. Retrieved at http://www.kazakhstaninvestment.com/credit-rating-2.html . Accessed 14 October, 2005
Jorion, Philipe; Liu, Zhu; Shi, Charles. Informational Effects of Regulation FD: Evidence from Rating Agencies. March, 2004. Retrieved at http://www.gsm.uci.edu/~jorion/papers/regFD.pdf#search='effects%20of%20credit%20rating%20agencies'Accessed 15 October, 2005
functions of financial markets and discusses why a dollar tomorrow cannot be worth less than a dollar the day after tomorrow. Furthermore, the paper explains the cash flows associated with a bond to the investor. And discusses the term "price-earnings (P/E) ratio." In addition, the paper discusses the certainty equivalent approach to estimating the NPA of A project and discusses the problems associated with capital investment process. Lastly, the paper contrasts and compares capital budgeting and strategic planning assesses the agency problems associated with capital budgeting.
Explain the functions of financial markets
The existence of the financial market is just to help and maintain the relations between the users of the capital and the providers of the capital. They also provide an opportunity for both the parties to do transactions with mutual benefits. It is there so that the investor and the investment can do the business smoothly and at…
References
Bernardo, A., H. Cai, and J. Luo, (2002). Capital Budgeting and Compensation with Asymmetric Information and Moral Hazard. Journal of Financial Economics, 61, 311 -- 344.
Dessein, W., (2002). Authority and Communication in Organizations. Review of Economic Studies, 69, 811 -- 838.
Graham, J., and C. Harvey, (2001). The Theory and Practice of Corporate Finance: Evidence from the Field. Journal of Financial Economics, 60, 187 -- 243.
Harris, M., and A. Raviv, (2002). Allocation of Decision-Making Authority. working paper, Graduate School of Business, University of Chicago.
James Bond's penis" author Toby Miller writes that after the 1960s: "masculinity is no longer the exclusive prominence of men, either as spectators, consumers or agents of power. And Bond was an unlikely harbinger of this trend" (Miller 233). Bond, rather than being a 'sexist dinosaur' and relic of the Cold War era (as he was once called by Judi Dench's M) actually an innovator in terms of the way he legitimized male sexuality on film. Miller sees Bond as questioning the male-centered gaze of desire presumed by the camera. It is Bond who leaves his women in a state of desire, never fully fulfilling their fantasies, even though he was viewed as exemplifying 'imperial decline' in the way he ruthlessly purses his self-interest in an amoral fashion as an agent in Her Majesty's Secret Service.
In the books, Bond is often shown burning with desire and having to put…
Anxieties of hite Mississippians Regarding Slavery
In Bradley G. Bond's book Mississippi: A Documentary History, the author describes in great detail the restlessness and anxiety that white folks in Mississippi felt with reference to the institution of slavery. Bond describes the growth of slavery, what crops made it necessary for Southern landowners to purchase more slaves, the laws that pertained to the behavior of slave owners and slaves, and more. This paper reviews and critiques the Antebellum Slavery chapter (4) in Bond's book.
Antebellum Slavery
The Code Noir was a law that was enacted in Louisiana in 1724, likely the first such law that was designed to lay out in particulars as to what was expected of slave owners and slaves. At that time in Mississippi, there was a great deal of tobacco and indigo being grown but not a lot of cotton. hen landowners began to realize that cotton…
Works Cited
Bond, Bradley G. Mississippi: A Documentary History. Jackson, MS: University Press of Mississippi. 2005.
Horses: Bonding and Barrel Racing
Horses have always inhabited a fond role within the minds of humans. They are graceful, yet very strong creatures, which are capable of great feats. Their sheer speed and agility is astounding, as seen in the case of barrel racing. In fact, barrel racing is actually a quite located sport, requiring an extreme trusting relationship between the rider and the horse. It is crucial to help establish a bond early on, to ensure that the horse is more trustful of the rider's guidance. In this regard, it is more beneficial to raise a barrel horse, or purchase the paint in a recently purchased barrel horses everyday lives. It is crucial to be present in the trusting partner within the relationship between rider and horse in order to gain the type of trust needed to pull off the complicated maneuvers and extreme speed needed to be…
Works Cited
Gerlach, Jeremy T. "Barrel Racer's Special Bond with Horse is Taking them Far." MySA Web. http://www.mysanantonio.com/rodeo/article/Barrel-racer-s-special-bond-with-horse-is-taking-3697845.php
Patterson, Rachel. "Raising vs. Buying a Barrel Horse." Barrel Horse News. 2013. Web. http://barrelhorsenews.com/articles/youth-forum/3852-raising-vs.-buying-a-barrel-horse
Vilhauer, Dave. "3 Barrels, 2 Hearts, 1 Goal." American News, 2013. Web. http://articles.aberdeennews.com/2013-06-10/sports/39855592_1_barrel-racing-horse-and-rider-college-national-finals-rodeo
Votruba, Cindy. "Bonded by Barrel Racing." Marshall Independent. 2010. Web. http://www.marshallindependent.com/page/content.detail/id/518783/Bonded-by-barrel-racing.html
Society Feels About Animals
As a first order primate, humans have a natural affinity with animals of all types that has contributed to their mutual relationships throughout history. In fact, animals of different types have been since the time of the ancient Greeks to improve the emotional and functional status of humans (Mccauley, 2006, p. 358). Animal-assisted therapy (AAT) has grown in popularity in recent years based on its proven efficacy in treating a wide range of healthcare and mental health conditions. Although dogs and cats are most commonly used in AAT settings, horses, rabbits and even fish can also be used. For instance, according to Macauley, "The use of animals ranges from companion animals that provide camaraderie and emotional support to assistance animals that provide direct physical-functional support to therapy animals that aid with the habilitation-rehabilitation in physical, occupational, speech-language, and recreation therapy" (2006, p. 358). Moreover, some researchers…
References
Becker, D. (2013, August 26). "Four-Legged Therapy for Military Veterans with PTSD."
Healthy Pets. [online] available: http://healthypets.mercola.com/sites/healthypets / archive/2013/0.
Bleich, A. (2004, October 1). "Mental Disability." The Israel Journal of Psychiatry and Related
Sciences, 41(4), 235-237.
Advice (SOA): Financial Planning
Purpose of this document is to prepare a statement of advice (SOA) on the financial planning for David Smith and Brenda Smith to achieve their financial goals. The advice is to communicate important information to clients in order to make informed decision about their financial portfolios. This document is a Statement of Advice or 'SOA' used to explain my advice, and highlights the important points. Please, be sure to read all sections of the SOA.
Summary of my Advice
I recommend that you sell your shares and reinvest the funds in the managed funds, which will assist you to get a return between $17,000 and $29,000 a year. Moreover, I recommend that you invest 60% of your superannuation in the managed funds. I carefully choose the categories of the managed funds that you could invest your money. Based on my recommendation, you are likely to get…
Reference
Australia Government (2010).Investment Management Industry in Australia. Australian Trade Commission.
Garrett, S.(2008). The Benefits of Mutual Fund Investment in an Uncertain Economy. (Second Edition). Wiley Publication.
InvestSmart.(2013).Top performing Managed Funds. InvestSMART Financial Services Pty Ltd.
Investing (2013).Australia - Government Bonds. Fusion Media Ltd.
pay back period" is the length of time that is required to cover the cost of an investment. I would use this in order to make a good financial decision.
The calculation that I would do is as follows:
"http://i.investopedia.com/inv/dictionary/terms/paybackperiod.gif" d?
For instance, if a project costs $100,000 and is expected to return $20,000 annually, the payback period will be $100,000 / $20,000, or, in other words, $20 per 5 years.
The better investment is the one that has the shorter pay back period.(Investopeida)
Another tool that I would use to measure the time value of money to assess long-term projects is Net present value (NPV). Businesses use it to measure the value of a time series of cash flows both incoming and outgoing. For instance, when all types of cash flows are incoming (such as bonds or coupons), and the only cash outflow is the purchase price, the NPV…
Sources
About.com Debt and Equity Financing
http://bizfinance.about.com/od/generalinformatio1/a/debtequityfin.htm
Benzinga. Com Understanding Stocks: The Concept of Betahttp://www.benzinga.com/general/psychology/12/01/2300328/understanding-stocks-the-concept-of-beta
Cuckke.com. Systematic risks and unsystematic risks.
Business Financing and the Capital Structure
Generally, businesses need to make several financial decisions that have significant direct effects on their operations and success in the increasingly competitive marketplace. However, there are numerous varying options that are available to businesses regardless of the types and sizes. The concept of business financing has emerged as an important aspect in the modern business environment because of the various financial decisions to be made by different firms. The main aim of this concept is to generate enough capital for the business to meet its existing needs in order to promote the growth of the business. In addition to generating capital for the growth of the business, business financing helps firms to meet the recurring financial obligations.
Use of Financial Planning in Estimating a Corporation's Asset Investment equirements:
Financial planning can be considered as a process that is used to approximate the financial requirements…
References:
Coplan, J.H. (2009, December 4). Raising Capital: Equity vs. Debt. Bloomberg Businessweek
Magazine. Retrieved June 2, 2013, from http://www.businessweek.com/magazine/content/09_72/s0912030511552.htm
Melicher, R.W. & Norton, E.A. (2011). Introduction to finance: markets, investments, and financial management (14th ed.). Hoboken, NJ: John Wiley & Sons, Inc.
Sharp, R. & Hua, W. (2004, January 4). International Investing: The Risks and Rewards.
Individual Financial Contingency Planning
Temporary Assistance is the temporary help for the needy women, men, and children. If one is cannot find a job or the job is not providing enough, and unable to work, temporary assistance ill help in paying the expenses. There are two types of Temporary Assistance programs: Family Assistance (FA) and Safety Net Assistance (SNA). Family Assistance is the provision of cash assistance to the needy families, which include minor children living with their parents or caretaker relatives. According to Family Assistance, qualified adults are limited to receive the assistance for a period of sixty months in their lifetime (Gitman & Joehnk, 2007, p. 21). Once this time has expired, not all the family members are legible to receive family assistance and other benefits. Parents and other adults who have been receiving Family Assistance must comply with the requirements of the fed in order to receive…
References
Arvai, Z. & Driessen, K. (2009). Regional Financial Interlinkages and Financial Contagion within Europe. International Monetary Fund.
Cumming, D. (2012). The Oxford Handbook of Entrepreneurial Finance. New York: Oxford University Press.
Gitman, L. & Joehnk, M. (2007). Personal Financial Planning. New York: Cengage Learning.
Jackson, P. (2006). Nonprofit Risk Management & Contingency Planning: Done in a Day Strategies. Washington: John Wiley & Sons
bond pays you $1,000 at the end of this year (Year 1) and $1,500 at the end of Year 2. The current one-year spot rate is 4% and the current two-year spot rate is 4.5%. Calculate the duration of this bond.
Use DURATION function on Excel ?
Using the partial durations calculated in #4a, how much would the bond's price change if the one-year spot rate decreased by 100 basis points and the two-year spot rate dropped 50 basis points?
Percentage price change = - Duration x Yield change x 100
-2.6 * -0.01 * 100 = 2.6% increase for r1 =3%,
-0.005 * 100 = 1.3% increase for r2 = 4%
The one-year spot rate (r1) is 6%, and the forward rate for a one-year loan maturing in year 2 ( f2) is 6.4%. Similarly, f3= 7.1%, f4 = 7.3%, f5 = 8.2%. What are the spot rates r2,…
Present Value
Price of bond= 0.385543*1000 +6.144567*100= $385.54.64+$614.45
Price of bond= $1,000
So, price of bond B. is $1,000 b. For market interest rate equal to 12%:
Price for bond a:
Market interest rate is equal Coupon rate is equal Face value Frequency Number of years to maturity Number of Periods Discount rate annually Discount rate per period n, periods r, per period 12%
10% $1,000 Annual 20-20-12.00% annual 12.00% 20-12.00%
Now we need to calculate PVIF and PVIFA.
For calculation of PVIFA (i, n) and PVIF I is equal to 20 periods and n=12%
PVIF= 1/(1+0.12)^20
PVIF=0. 103667
PVIFA= (1- 1/(1+.12)^20)/.12
PVIFA=7.469444
Price of bond= 0.103667*1000+7.469444*100=$851
Price of bond a = $851
Price of bond B:
Market interest rate is equal Coupon rate is equal Face value Frequency Number of years to maturity Number of Periods Discount rate annually Discount rate per period n, periods r, per period 12%…