1. Why have riskless zero-coupon bonds been so successful with investors? Zero-coupon bonds have been successful because they can be purchased by investors at a deep discount from their face value and because the investor knows exactly how much they will collect in a lump sum at the bond’s maturity date. Zeros do not pay interest during the life of the bond and at maturity; the investor receives an amount equal to the initial investment plus the imputed interest. Zeros are offered for long-term
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equity at discounted price. j. If interest rates rise‚ then company need to pay higher interest rate‚ if rates fall‚ then company benefits. 2. Coupon bonds to sell = $30‚000‚000 / $1‚000 = 30‚000 The price of the 20-year‚ zero coupon bond when it is issued will be: Zero coupon price = $1‚000 / 1.0820 = $214.55
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DFI 501: FINANCIAL MANAGEMENT TIME VALUE OF MONEY Amortizing a Loan An important application of discounting and compounding concepts is in determining the payments required for an installment – type loan. The distinguishing features of this loan is that it is repaid in equal periodic (monthly‚ quarterly‚ semiannually or annually) payments that include both interest and principal. Such arrangements are prevalent in mortgage loans‚ auto loans‚ consumer loans etc. Amortization
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MANAGEMENT ACCOUNTING A REPORT ABOUT BUDGETING OF PHONG PHU& VINABIKE AND VARIANCE ANALYSIS OF RILEY LABS & ANTIGUA BLOOD BANK Prepared for: Lecturer‚ Ms. Nam Giang Dao Prepared by: “STARS” group Kelly- Nguyễn Thu Minh (Leader) –F04-109 Tom- Nguyễn Quang Anh –F04-009 David- Đậu Xuân Mạnh –F04-107 Bi- Phạm Kim Ngân –F04-120 Final submission: 26 June 2012 EXECUTIVE SUMMARY
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years. b. (20/1000) x 2 = 4%‚ so the coupon rate is 4%. c. The face value is $1000. 8-3. The following table summarizes prices of various default-free‚ zero-coupon bonds (expressed as a percentage of face value): [pic] a. Compute the yield to maturity for each bond. b. Plot the zero-coupon yield curve (for the first five years). c. Is the yield curve upward sloping‚ downward sloping‚ or flat? a. Use the following equation.
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Question 1 Why did the Marvel file for Chapter 11? Were the problems caused by bad luck‚ bad strategy or bad execution? Marvel had six principle lines of business i.e. Sports & Entertainment Cards‚ Toys‚ Children’s Activity Stickers‚ Publishing‚ Confectionery & Consumer Products and Licensing of characters. While carrying on operations in these lines of business‚ Marvel ignored the alternative means of entertainment which were trending e.g. video games. Moreover‚ interest of collectors in comic
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LECTURE 1 – BOND PRICING WHAT IS A BOND? A bond is a claim on some fixed future cash flows. A commonwealth government bond (CGB) is a bond which pays semi-annual coupons‚ in which the maturity date/ coupon payment date is on the 15th of every month. A zero coupon bond is a bond with no coupons. The important information of a bond: 1. 2. 3. 4. 5. 6. • 1. 2. Transaction date: T Settlement date:T+2 Coupon payment dates Maturity date YTM Coupon rate Cum-interest or Ex-interest? If ex-interest If> 7 days
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Green architecture‚ or green design‚ is an approach to building that minimizes harmful effects on human health and the environment. The "green" architect or designer attempts to safeguard air‚ water‚ and earth by choosing eco-friendly building materials and construction practices. Green architecture may have many of these characteristics: • Ventilation systems designed for efficient heating and cooling • Energy efficient lighting and appliances • Water saving plumbing fixtures • Efficient
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servant‚ wang-wang was used by public officials to violate traffic laws and at the same time they acted like kings. Also exists in private sector and agriculture‚ and to end the wang-wang culture in government‚ zero-based budgeting was employed to review programs. For this year and the last‚ zero-based budgeting has allowed ending many wasteful programs. • The cancellation of ARMM election was one of several serious decisions he made. And he is not lamenting it at all. He then justified it by saying
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BUDGET AND BUDGETARY CONTROL PRACTICES IN THE COLLEGE OF TECHNOLOGY EDUCATION‚ KUMASI 1.0 BACKGROUND OF THE STUDY Universities and colleges need to recognize that they too are businesses (Dr. Brendan Nelson‚ 2002). Investors‚ senior executives and the business community have long sought for ways to better control the companies and enterprises they run. As part of a broader micro-economic reform of the public sector‚ the higher education sector has been targeted for its perceived role for improving
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