many regulatory functions include: * Supervising exchanges‚ clearing houses and central depositories; * Registering authority for prospectuses of corporations other than unlisted recreational clubs; * Approving authority for corporate bond issues; * Regulating all matters relating to securities and futures contracts; * Regulating the take-over and mergers of companies * Regulating all matters relating to unit trust schemes; * Licensing and supervising all licensed
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Question 1 of 20 5.0 Points Alicia Cooper makes sure to contribute ten percent of her monthly earnings to her 401(k) plan at work. Her 401(k) plan allows her to invest in several different types of mutual funds. Which suggestion for the obtaining money she needs for investing is she following? A. Paying herself first B. Taking advantage of employer-sponsored retirement programs C. Participating in an elective savings program D. Making a special effort once or twice a year to save
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evolution of credit and debt was as important as any technological innovation in the rise of civilization‚ from ancient Babylon to the silver mines of Bolivia. Banks provided the material basis for the splendors of the Italian Renaissance‚ while the bond market was the decisive factor in conflicts from the Seven Years’ War to the American Civil War. Perhaps most important‚ the videos document how a new financial revolution is propelling the world’s biggest countries‚ India and China‚ from poverty
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objective of this article is to describe the approaches of credit risk measurement that are developed by different researchers during the past 20 years. Then‚ Altman and Saunders are carrying out their new approach‚ which may suitable for loans and bonds for risk
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Introduction Hospital Corporation of America (HCA) is a proprietary hospital management company. The company has been following an acquisitive strategy by taking over hospital companies and not-for-profit hospitals. The firm is also considering expanding into new health service areas like home health care and outpatient surgery. The company is at a crossroads with regard to its financial goals; HCA currently faces the likelihood of adverse changes to the Medicare/Medicaid policy which could strain
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Text Problem Sets A1. (Bond valuation) A $1‚000 face value bond has a remaining maturity of 10 years and a required return of 9%. The bond’s coupon rate is 7.4%. What is the fair value of this bond? Number of years (N) = 10‚ future value (FV) = 1000‚ interest rate (I/YR) = 9 0.074 * 1000 = 74 = PMT or annual payment‚ I then pressed CPT on my financial calculator to compute the price of the bond and then pressed PV or present value. The fair value of the bond is $897.32. Using Cash Flow of
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debenture because the particular assets are kept without any financial limitations so that the option is open for issuing them in future for financial purposes. Debentures and Bonds The Debenture has some similarities with Bonds but the terms and conditions of securitization of Debentures are different from that of a bond. A debenture is regarded as an unsecured investment because there are no pledges (guarantee) or liens available on particular assets. However‚ a debenture is backed by all the
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a five-year coupon bond with a face value of $1000 paying an annual coupon of 15%. (i) If the current market yield is 8%‚ what is the bond’s price? (ii) If the current market yield increases by 1% what is the bond’s new price? (iii) Using your answers to part (i) and (ii) ‚ what is percentage change in the bond’s price as a result of 1% increase in interest rates. Q.2 Consider the following FI balance sheet: M. Match Ltd Assets | Liabilities | 2 –year Treasury bond $175‚000 | 1-year
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Glossary – Financial Markets & Institutions ________________________________________ A advances A bank’s borrowings from the Federal Reserve System. Also known as discount loans. adverse selection The problem created by asymmetric information before a transaction occurs: the people who are the most undesirable from the other party’s point of view are the ones who are most likely to want to engage in the financial transaction. agency theory The analysis of how asymmetric information problems
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etc) Capital market debt: long term bonds‚ can be safe or risky (Treasury bonds‚ municipal bonds‚ corporate bonds‚ etc) Bond ratings: in terms of default risk‚ from very safe to junk Common Stock and Derivatives Common Stock is equity or ownership in a corporation. Derivatives 1-5 Payments to stockholders are not fixed‚ but depend on the success of the firm Value derives from prices of other securities such as stocks and bonds Used to transfer risk (hedge)
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