The capital market supply long term funds to corporations‚ government entities and other users of capital. The general type of debt instrument of the capital market is the bond. Bonds usually pay interest to the holder once in every six months (semi annually) and pay the principal or face amount upon maturity. Treasury notes and treasury bonds: The long term bond issues of the treasury that are available to investors are the treasury notes and the treasury bonds. Treasury notes have original fixed
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Domestic Debt and the Nigerian Economy I. Adofu and M. Abula Departm ent of Eco nom ics‚ Kogi S tate University‚ A nyigba‚ Nigeria Abstract: The study investigates the empirical relationship between domestic debt and economic grow th in Nigeria. Using OLS regression techniques and the time series data from 1986 – 2005‚ the study explored the relationship betw een d ome stic deb t and economic growth in Nigeria. Our result shows that domestic debt has affected the growth of the economy negatively
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America’s Economy Today With all the bad publicity about the economy nowadays anyone with access to a TV‚ magazine‚ or newspaper should be somewhat familiar with the current economic crisis here in America. It seems like the Dow Jones Industrial Index and the S&P 500 Index are dropping lower every day‚ not to mention the poor condition of tech stocks listed in Nasdaq. Here’s some current stock market figures that display the markets current deterioration: The Nasdaq index lost 8 percent of its
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National Debt on the Economy | | | | Table of Contents Abstract………………………………………………………………………………………………………………………………………..3 Introduction………………………………………………………………………………………………………………………………….4 Literature Review………………………………………………………………………………………………………………………….9 Discussion…………………………………………………………………………………………………………………………………….10 References……………………………………………………………………………………………………………………………………11 Abstract This article discusses the shape the economy is in. Then the article examines what national debt is‚ and the
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MAIN SOURCES OF EQUITY AND DEBT FOR PROJECTS The main sources of equity and debt can be divided into two groups of lenders and sponsors. Group 1 – commercial lenders‚ include: 1. Banks; 2. Institutional lenders; 3. Commercial finance companies; 4. Leasing companies; 5. Individuals; 6. Investment management companies; 7. Money market funds. Groups 2 – commercial sponsors‚ include: 1. Companies requiring the product or service; 2. Companies supplying products or raw materials to the project;
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considered selling the Machine-Tech division. This sparks up interest to the users as to find out the reason behind it. It currently has a debt-to-equity ratio of 0.66. But‚ the Board of Directors has decided to raise a significant amount of debt to finance the construction of a new manufacturing plant for the Solar-Electro division. This would increase the debt-to-equity ratio‚ which could generate concerns to investors. It is sensible to assess a low acceptable audit risk when the external users rely
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DEBT vs. EQUITY AND ASYMMETRIC INFORMATION: A REVIEW Linda Schmid Klein‚ University of Connecticut Thomas J. O’Brien*‚ University of Connecticut Stephen R. Peters‚ University of Cincinnati March 2002; Forthcoming‚ The Financial Review *Corresponding author: Department of Finance‚ University of Connecticut‚ 2100 Hillside Rd.‚ Storrs‚ CT 06269-1041; Phone: (860) 486-3041; Fax: (860) 486-0634; E-mail: thomas.obrien@uconn.edu Acknowledgements: The authors thank Ivan Brick‚ Shanta Hegde
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The State of Today’s Economy The State of Today’s Economy In most cases the economy is in a state of expansion. The economy is almost always constantly growing due to population change and other factors. However‚ we must measure the change in growth rate to effectively measure if our economy is contracting or expanding. To measure the growth rate of the economy we measure the positive or negative change in Gross Domestic Product (GDP). We use the GDP from the previous year‚ subtract this
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Is equity still relevant today? Prior to the Norman conquest in 1066 ‚ different areas of England were governed by different systems of law. William the conqueror gained the English throne in 1066 and began standardizing the law. “Itinerant justices” were able to discuss the various customs of different parts of the century. The principle of ‘stare decisis’ grew up and by 1250 a ‘common law’ has been produced. Common law is the basis of our law today. It is an unwritten law that developed from
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LECTURE 2 Debt exists of one of two broad types of claims on a business‚ Equity and Debt. That is ownership claims (or the right to any and all residual asset value after all prior claims are met) and prior ranking claims known as debt. Equity is typically a form of permanent capital in the capital framework of a company while debt is typically nonpermanent with a variety of forms. This course focuses on Dept with special emphasis on the Debt Capital Markets. A debt instrument is a document
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