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determine the valuing equity securitiesunlike debt and money market instruments equity instruments represent ownership interest in the company as
state the term- pass through certificates ptcspass through certificates ptcs are debt securities which pass through income from debtors through
what is the floating rate bonds frbsbonds whose interest payments fluctuate with changes in general level of interest rates and are tied to a basic
determine about the zero interest bonds zibsvery much alike ddbs only crucial difference is that these are issued at face values ddbs are issued at a
expalin about the non-convertible debentures ncdsncds are plain debenture securities issued by corporations they are normally medium term in nature
state about the two types of government securities there are two types of government securities which are offeredgovernment floating rate bonds which
what are the government securitiesgovernment is one of the biggest borrowers from capital and money market we have already taken a look at money
explain the types of debt securitiesthere are many types of debt securities available in market the range includesgovernment securitiesdeep
determine the method of credit ratingit is obligatory for the issuing companies to get credit rating done on debt securities issues credit ratings
what is sinking funda provision which requires the corporation to set aside a fixed amount every year to help provide for orderly repayment of the
illustrate the process of calculating call put options yields issuing corporation will use provision if interest rates fall substantially below
determine about the call and put optiona call put option provision allow both issuing company and investor to redeem the bonds at a specified amount
state the term - redemptionredemption is repayment of debt security at or before maturity redemption could at par or at a premium to face value a
explain the term- maturitiesdebentures are sometimes grouped by length of time till maturity that existed on the date debenture was first issued
explain about the interest paymentsdebenture interest is generally paid semi-annually however annual payments arent uncommon usually there are
what is coupon ratecoupon rate is the stipulated interest rate to be paid on the face value of a bond it represents a fixed dollar amount which
what is face value par valuevalue of security as mentioned on certificate of the security face values and par values are two terms that are used
how debt securities is different from term loandebt securities are different from term loans provided by financial institutions and banks to the
what are the factors of debt securitiesa legal agreement known as a trust deed is drawn between security holders and company issuing the debt
valuing debt securitiessecurities which promise to pay its investors a stated rate of interest and return principal amount at the maturity date are
how can we measure total return- measuring the rate of returntotal return can be defined astotal returns cash payment received price change over
determine the concept of measuring the rate of returnthe rate of return is total return the investor receives during holding period the period when
what are the components of returnreturn is fundamentally made up of two componentsperiodic cash receipts or income on the investment in the form
what is the value of the security to an investor value of the security to an investor is directly proportional to the return that he is expected to
factors of importance of returns in any investment importance of returns in any investment decision can be traced to the following factorsit