Fixed Income
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How does the market find out the fair value of a bond?The fair value of bond is the present value of the bond's coupon interest payments plus the present value of the face value payment at maturity, discounted at the market's required rate of re
Financial Reporting: It is a set of documents made generally by government agencies at the end of accounting period. It usually enclose summary of accounting data for that time period, with background forms, notes, and other information.
Debt Service: The amount (sum) of money needed to pay interest on exceptional bonds and the principal of maturing bonds.
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Summer Co. is expected to pay a dividend or $4.00 per share out of earnings of $7.50 per share. If the required rate of return on the stock is 15% and dividends are growing at a current rate of 10% per year, calculate the present value of the growth opportunity for the stock (PVGO)
Financial Models: A model which symbolizes the financial statements or financial operations of a company in terms of its business parameters and forecasts future financial performance. Models are employed for risk management by examining various econo
Modified Accrual Basis: The base of accounting in which revenues are acknowledged when the underlying transaction has occurred as of the last day of the fiscal year and the quantity is measurable and accessible to finance expenditures
Legislative Counsel Digest: The summary of what a legislative measure does contrasting the existing law and the proposed change. This summary emerges on the first page of the bill.
How are financial trades made in an over the counter market?On the contrary to the organized exchanges that have physical locations, the over the counter market contain no fixed location, or more accurately, it is everywhere. The over the counte
Operating Expenses and Equipment (OE&E): This is a class of a support appropriation which comprises objects of expenditure like general expenses, communication, printing, travel, data processing, tools, and accessories for the equipment.
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