Using present value to value bonds A bond‚ from the perspective of the person issuing the bond is a form of long term debt. In the hands of the person who has acquired the bond it is an asset. The agency issuing the bond agrees to pay a fixed sum of money to the holder of the bond for a period of years and then‚ at the end of that period‚ to pay back the face value of the bond. Bonds can be issued by a variety of agencies/companies: 1. Municipal bonds: issued by cities‚ states and
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BONDS Bonds pay fixed coupon (interest) payments at fixed intervals (usually every six months) and pay the par value at maturity. Par value = $1‚000 Coupon = 6.5% or par value per year‚ or $65 per year ($32.50 every six months). Maturity = 28 years (matures in 2032). Issued by AT&T. Types of Bonds Debentures - unsecured bonds. Subordinated debentures - unsecured “junior” debt. Mortgage bonds - secured bonds. Zeros - bonds that pay only par value at maturity; no coupons. Junk bonds - speculative or
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Externally‚ Market was changing. Down Corning kept on losing customers to low-price suppliers. 1) Big global and regional rivals were increasing their efficiency of supply chain to provide lower cost to the customers. 2) Small local players with no R&D costs and low overhead were offering a range of commodity silicone products to bulk customers at low price. 3) The commoditization trend was also denting Dow Conning’s financial performance. Internally‚ Dow Corning didn’t change its business and marketing
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following events would make it more likely that a company would choose to call its outstanding callable bonds? a. The company’s bonds are downgraded. b. Market interest rates rise sharply. c. Market interest rates decline sharply. d. The company ’s financial situation deteriorates significantly. e. Inflation increases significantly. . A 10-year bond with a 9% annual coupon has a yield to maturity of 8%. Which of the following statements is CORRECT? a. If the
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Coke often rejected it anyway because of its aspartame-sweetened aftertaste. “What we were seeing before Zero launched was that more and more younger people were interested in no-calorie beverages but weren’t going to sacrifice taste‚” Bayne said. “So when they got interested in no-calorie‚ they were like‚ ‘Forget it‚ I’m not going to Diet Coke.’” Testing showed that the name “Coke Zero” would be an effective way to sell a low-calorie cola to men without using the word “diet.” And advances
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2013/3/2 OBH Day4 “Corning Glass Works（CGW）: The Electronic Products Divisions （A）” 1 Conduct a situational analysis of EPD using the information presented in the case. Why has there been such a strong tension among functional department? 1-1 Summery EPD is struggling to face a transformation of business model. They should change their business from product oriented to customer oriented because the key success factor of the component market is not technological advantage anymore.
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The Red Convertible In the criticism by Pratima Dutta “Erdrich’s the Red Convertible” she presented valid arguments that Louise Erdrich‚ the author of the story “The Red Convertible”‚ is a nationalist of the Native American culture despite her frequent use of symbols of the western civilization in the text of the story. Pratima claimed that the tragedy of Henry was in his inability to resist the influence of the western civilization‚ though she failed to address contradictory evidence in the story
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upon a time there was no zero. Of course people knew if they had nothing‚ but there was no mathematical notation for it. Zero was independently invented only three times. The first recorded zero is attributed to the Babylonians in the 3rd century BC. A long period followed when no one else used a zero place holder. But then the Mayans‚ halfway around the world in Central America‚ independently invented zero in the fourth century CE. The final independent invention of zero in India was long debated
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“The Red Convertible and Symbolism” In Louise Erdrich ’s short story‚ "The Red Convertible‚" she portrays the change that war imposes on the relationship of two brothers‚ Henry and Lyman. She uses symbolism to reveal the hardships Henry brings back from Vietnam‚ and she also uses it to show how Lyman dealt with the separation and the effect of the war on his brother. Edrich’s main purpose in “The Red Convertible” is to communicate the emotional afflictions war
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of Bonds Fixed rate bonds have a coupon that remains constant throughout the life of the bond. A variation are stepped-coupon bonds‚ whose coupon increases during the life of the bond. Zero-coupon bonds (zeros) pay no regular interest. They are issued at a substantial discount to par value‚ so that the interest is effectively rolled up to maturity (and usually taxed as such). The bondholder receives the full principal amount on the redemption date. High-yield bonds (junk bonds) are bonds that
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