BONDS COMPUTING THE COUPON RATE‚ PRICE‚ YIELD AND YTM OF A BOND Compute the coupon rate of a bond: Divide the coupon by the face value of the bond. Example: A bond has a $1‚000 face value‚ a market price of $1‚115‚ and pays interest payments of $90 every year. What is the coupon rate? Coupon Rate = Coupon/Face Value Coupon Rate = $90/$1‚000=9% Compute the current price of a bond (annual coupon payments): The price of a bond equals the present value of the coupon payments (calculated
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THE GOVERNMENT AND POLLUTION Pollution is a very tough topic in today’s market and in my personal opinion; Government should intervene for the following reason. Let’s take the example of a company that manufactures blue jeans at a factory location on a river. The problem is that‚ as a byproduct of its manufacturing operations‚ the factory dumps chemical pollutants into the river. But no single person or entity owns the river water‚ so there is no one to force the company to stop polluting. Moreover
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Year | 5% Bonds | 11% Bonds | 1975 | $1.695 | $2.233 | 1976 | $1.695 | $2.233 | 1977 | $1.695 | $2.233 | 1978 | $1.695 | $2.233 | 1979 | $1.695 | $2.233 | 1980 | $1.695 | $2.233 | 1981 | $1.695 | $2.233 | 1982 | $1.695 | $2.233 | 1983 | $1.695 | $2.233 | 1984 | $1.695 | $2.233 | 1985 | $1.695 | $2.233 | 1986 | $1.695 | $2.233 | 1987 | $1.695 | $2.233 | 1988 | $35.595* | $22.533* | *Face value and interest (In millions) 1. $33.9 million (Face value) X 5% (Coupon
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Term financial market A financial market is a market in which financial assets are traded. In addition to enabling exchange of previously issued financial assets‚ financial markets facilitate borrowing and lending by facilitating the sale by newly issued financial assets. Examples of financial markets include the New York Stock Exchange (resale of previously issued stock shares)‚ the U.S. government bond market (resale of previously issued bonds)‚ and the U.S. Treasury bills auction (sales of newly
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country should want the best for its citizens and would want them to be healthy‚ successful‚ and productive. Therefore I affirm today’s resolution "A just government should provide health care to it’s citizens." But before I begin I would like to offer the following definitions from Webster’s New world Dictionary to clarify the round: Just Government- meaning a "right or fair way in which a society is run/ governed" Health Care meaning "the prevention and treatment of illness or injury." And should-
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GOVERNMENT OF PARADISO Opportunity to Develop Microanalyzer Industry In a recent discussion with executives of Grupo Paradys‚ government officials had learned of this company’s interest in pioneering the manufacture of microanalyzers in Paradiso. While the business leaders cautioned that they had barely initiated discussions with one of the multinational leaders in microanalyzer production‚ their analysis showed that local production was feasible. They indicated that they were hoping that the
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The purpose of this report is to exemplify the role of government with the focus on the developing countries by answering the proposed question of Why do we need government intervention? and Why government intervention is necessary for the new economy? The first part of this report illustrates the essential roles of government in social‚ business‚ and the future of country aspects. Then‚ Thailand was chosen as an example of a country entering into the new economy‚ while using the other countries
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The Whitlam Government (1972 1975) introduced many ideas that impacted on all the people of Australia. There may have been impediments that prevented the Whitlam Government from introducing new ideas‚ such as the Senate. Nevertheless in three years the Whitlam Government managed to win the hearts of many Australians. In their three year reign the Whitlam Government managed to create Medibank‚ establish firm relations with People’s Republic of China‚ establish the Department of Aboriginal Affairs
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Collective choice exercised through government structures offers the possibility for correcting the perceived deficiencies of individual choice. However‚ government intervention sometimes fails to promote social values in desired and predictable ways as individual choice does. Public policy should be informed not only by an understanding of market failure but of government failure as well. Definition: Government failures arise when government has created inefficiencies because it should not
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and secondary markets‚ and how each functions. Explain how the secondary market supports the function of the primary market‚ and how financial market turmoil (e.g. 2008-09) impedes this. 2. Discuss the differences between the Money and Capital Markets‚ and the types of securities trade in those markets. Give examples. 3. Discuss what market whether you would go to the Money or Capital Markets to raise funds for construction of a factory. Explain why. Discuss which market and the sort of
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