...Running Head: BONDS UNIVERSITY OF TECHNOLOGY, JAMAICA School of Advanced Management/Post Graduate Division Managerial Finance MBA 5002 Individual Assignment Title: Bonds, a Method of Finance Name and Identification Number: Jodiann Henry - 0416180 Lecturer: Kerwin Hamil Date: Saturday, April 11, 2015 A project report submitted in partial fulfillment of the requirements for the award of the degree of. MASTER OF BUSINESS ADMINISTRATION from the University of Technology, Jamaica. Running Head: BONDS For debt securities the issuer is obliged to repay and there is always recourse if he/she fails to honour those obligations; the main type of debt security is known as Bonds. Bonds are referred to as debt securities or debt instruments issued by a corporation or a government to raise money from the public. Its basic provisions generally entail a series of contractual interest payments, at a particular (fixed or variable) rate of interest (coupon) based on a stated par (face value) of the bond. As investing in bonds is considered less risky, people tend to invest with the objective of earning higher returns on their investments. Bonds can be traditional, zero coupon, typical or perpetual. Traditional bonds are purchased at face value, they pay face value at maturity and they pay regular interest. Zero coupon bonds pay no interest over their life. These bonds are purchased at a discount and pays face value at maturity. A typical bond purchased today...
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...Licensed to: iChapters User Research Method and Methodology in Finance and Accounting Second Edition Bob Ryan Robert W. Scapens Michael Theobold Australia . Canada . Mexico . Singapore . Spain . United Kingdom . United States Licensed to: iChapters User Research Method and Methodology in Finance and Accounting Copyright © Bob Ryan, Robert W. Scapens and Michael Theobold 2002 _______________________________________________________________________ The text of this publication, or any part thereof, may not be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, storage in an information retrieval system, or otherwise, without prior permission of the publisher. While the publisher has taken all reasonable care in the preparation of this book the publisher makes no representation, express or implied, with regard to the accuracy of the information contained in this book and cannot accept any legal responsibility or liability for any errors or omissions from the book or the consequences thereof. Products and services that are referred to in this book may be either trademarks and/or registered trademarks of their respective owners. The publisher and author/s make no claim to these trademarks. British Library Cataloguing-in-Publication Data A catalogue record for this book is available from the British Library _______________________________________________________________________ ISBN: 978-1-86152-881-0...
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...FRE6083, Midterm Examination, Wednesday March 12 2014, 5:30pm-8:00pm 1. Number of pages including this one: 2 2. For this examination, you may only use a 2-page cheat sheet. No other notes, books or electronic devices may be used. Cell phones may not be used. Any violation of this policy will result in a grade of zero for this exam. Problem 1 (12 points) We consider X1 , X2 , · · · Xn , independent and identically distributed random variables with common mean µ ∈ R and common variance σ 2 > 0. 1. (4 points) What is the limit of 1 n n i=1 Xi as n → +∞? Justify your answer. We suppose that µ is not known. You observe 1000 samples drawn from the common distribution of Xi and you estimate the mean µ by using the sample mean estimator 1 x= 1000 1000 Xi . i=1 2. (4 points) Give the approximate distribution of the error x − µ for the above estimate. 3. (4 points) In particular, give the approximate mean and variance of x − µ. Problem 2 (16 points) We consider a discrete time and discrete space Markov chain Xn with state space {0, 1, 2, 3} that has the one-step transition probability matrix 1/3 0 2/3 0 1/2 0 0 1/2 P = 0 1/3 1/3 1/3 0 1/3 0 2/3 and assume that X0 = 0. 1. (5 points) Is this Markov chain irreducible? Justify your answer. 2. (3 points) Compute P (2) . 3. (4 points) Compute E[X2 |X0 = 0]. 4. (4 points) What is the probability that the chain will move to the state 1 for the first time after exactly 2 steps? 1 Problem 3 (22 points) Consider...
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...Application of Computational Methods Real Estate Investment Industry: (project no) Authors :( 3:3:3) Application of Computational Methods Real Estate Investment Industry Abstract The paper studies the computation methods applied in real estate brokerage industry, Real estate development is a commercial activity involving taking the take the future of an area and trying to shape it needs of future generations and the ambition to make it successful merchandise in the real estate marketplace and thus it is a risky market venture. The paper, therefore, seeks to link the use explicitly of mathematical computation methods used in real estate to how they help manage sales of recently constructed assets. The cost of construction is estimated by the internal area info included in the contract records and from available gross construction cost rates. The most commonly adopted approaches are the binomial models, Black and Scholes and Monte Carol stimulation form the basis of the paper. The motivation for this project is set out more clearly and the computation study methods used in the real estate brokerage industry. Keywords Real estate, Monte Carlo simulations, interpolation, forecasting, Binomial models and Black and Scholes models Introduction Real estate business is the production plant of our cities that converts unproductive land to town space used for various activities by different people. Real estate development...
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...Positive Impacts that Information Technology has had in the Finance and Accounting Fields The role of Information Technology (IT) in today’s world cuts across almost all sectors of the economy and society. In finance and accounting, IT has played a significant role in ensuring the efficiency and effectiveness of accounting and finance activities (Half, 2012). Several IT networks and computer systems have shortened the lead-time necessary for accountants to make and present financial information to firms’ managements and other stakeholders. Moreover, the IT has also improved the overall efficiency of the information provided by the accountants to firms’ management departments. Accurate information by the accountants is crucial for appropriate and relevant decision making by the company. One of the biggest impacts of IT in accounting is the development and use of computerized systems in tracking and recording various financial transactions. Before the innovation of technology and its use in finance and accounting, recording of transactions took long and was never accurate. The paper ledgers, handwritten financial statements, and spreadsheets have been translated into computer systems for quick presentation of individual transactions into easily interpretable financial report (Half, 2012). Improved reporting is necessary for investors in the determination whether a company is an appropriate investment for growth opportunities. It also determines whether it has a potential...
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...Reporting practice and ethics paper Latrice Robertson Hcs/405 February 3, 2014 Sherida Douglass Reporting practice and ethics paper It is the responsibility of a health care manager to understand the basic principles of accounting and finance, and have the knowledge and the understanding of a financial report and what it means. Without these skills and ethical standards it could result in poor management. Financial management is a vital part of organizational effectiveness and success. Financial management requires four elements in order to operate properly. The four elements of financial management: Planning- the financial manager identifies the steps that must be taken to accomplish the organizations objectives. The purpose is to identify objectives and the steps to accomplish these objectives. Controlling- The financial manager make sure that each area of the organization is following the plans that have been established. Organizing_ The financial manager decides how to use the resources of the organization to most effectively carrying out the plans that have been established. Decision making- The financial manager makes choices among available alternatives. All types of decisions making rely on information and evaluation. The purpose is to make informed choices. Generally accepted accounting principles are accounting standards and guidelines used in financial accounting and reporting. Generally accepted accounting principles (GAAP)., are accounting rules...
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...Title Author Research Objectives Hypothesis Methodology Data collection methods Sample Statistical method Findings/result Conclusion Islamic Finance and the Afterlives of Development in Malaysia Daromir Rudnyckyj To describes some of the actions that have taken to position Kuala Lumpur as the central node in this emerging financial system. It also highlights the key principles of Islamic finance and the debates in which practitioners are engaged while developing a shariah-compliant financial system. Four aspects of Malaysia’s Islamic finance project reflect the afterlives of development. A novel approach to capitalism has been created to show how the efforts build on prior legacies of develop mentalism. First, state plans to build an Islamic...
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...Internal and External sources of finance for ASDA There are five internal sources of finance: • Owner’s investment (start up or additional capital) This is money which comes from the owners own savings. It may be in the form of start up capital - used when the business is setting up. It may be in the form of additional capital – perhaps used for expansion. This is a long term source of finance. Advantages of this are that it doesn’t have to be repaid and no interest is payable. Disadvantages of this is that there is a limit to the amount an owner can invest. • Retained profits this source of finance is only available for a business which has been trading for more than one year. It is when the profits made are ploughed back into the business. This is a medium or long-term source of finance. Advantages of this can range from the fact that it doesn’t have to be repaid and that no interest is payable. Disadvantages of this are that some businesses are unlikely to have surplus assets to sell also there can be a slow method of raising finance. ASDAs retained profit in 2013 was £5.1billion. In 2014 it increased to £5.5billion. • Sale of stock This money comes in from selling off unsold stock. This is what happens in the January sales. It is when the profits made are ploughed back into the business. This is a short-term source of finance. Advantages of this are that it is a quick way of raising finance. Also by selling off stock it reduces the costs associated with holding them...
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...the business. Guillermo will need to determine another resolution to stay up with the rivalry if he want’s to stay open. This essay will discuss the finance concept in efforts to keep Guillermo’s furniture store in business. There are many problems that need to be resolved at Guillermo’s furniture store before the competition takes over. Some of the areas that need to be cover to survive in the industry and to be complete in the international market and not loose any of his customers is to analyze how to keep up with business and be able to uphold a constructive cost arrangement that will decrease the outflow and bring more in profit. Currently labor cost hours are greatly higher since all pieces of furniture are being build by hand, meaning more time is spend in each piece being build. Building furniture pieces with state of the art machine will diminish the expenses and carry in more income. Labor costs are currently much higher due to the hand build detail and time that goes into each piece of furniture. With the new technology being use by the competitors, the profits will increase and will also decrease labor cost. Weight Average and Cost of Capital Understanding this is very important; this provides personal in the industry a complete cost that is combined by the equity and debt in order to finance in corporation. The ultimate objective of a business is to raise revenue and growth, if any of this two do not upsurge than the rate of the...
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...MGT-401 | Fundamentals of Management | | 6 | ECO-401 | Economics for Managers | | 7 | FIN-401 | Fundamentals of Finance/Introduction to Finance | | 8 | MKT-401 | Principles of Marketing | | 9 | HRM -501 | Human Resource Management | | 10 | BUS-403 | Legal Environment in Business | | 11 | MGT-402 | Organizational Behavior and Leadership Development | | 12 | MAT-402 | Quantitative Methods and Techniques in Business(A) | | 13 | MAT-402 | Quantitative Methods and Techniques in Business(B) | | 14 | BUS-404 | Research Methods in Business (Section-A) | | 15 | BUS-404 | Research Methods in Business (Section-B) | | | | Functional Courses | | | | Major in Finance | | 16 | FIN-501 | Financial Management | | | | | | 17 | FIN-502 | Financial Institutions and Market | | | | | | | | Major in Marketing | | 18 | MKT-501 | Marketing Management | | 19 | MKT-502 | Consumer Behavior | | | | Major in Human Resource Management | | 20 | HRM-502 | Comparative Human Resource Management | | | | Major in Accounting | | | | | | | | Capstone Courses (Compulsory for all) | | 21 | MGT-501 | Strategic Management (A) | | 22 | MGT-501 | Strategic Management (B) | | Major Courses | | Major in Finance | | 23 | FIN-503 | Corporate Finance | | 24 | FIN-505 | Working Capital Management | | 25 | FIN-506 | International Financial...
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...Feb. 5 midnight) Right on homework Corrected on homework Multiple Choice Questions: 1. Which of the following statements about finance, accounting, and financial management is most correct? a. Accounting is of no value in decision making. b. Accounting provides the theory and concepts necessary to help managers make better decisions. c. Financial management involves the measurement, in financial terms, of operational events that affect the resources and financing of an organization. d. The primary role of finance is to plan for, acquire, and use resources to maximize the efficiency and value of the enterprise. Pp slide 22 (Gapenski 2012) e. Financial management is of no value in decision making. 2. Which of the following statements about the role of finance in healthcare organizations is incorrect? a. Over time, the finance function has become increasingly focused on strategic issues, such as joint venture decisions. b. Today, the most critical finance function is cost identification. Should say cost containment pg. 8-9 c. The finance function often supports cost containment efforts and third-party payer contract negotiations. d. The primary activities of the finance function can be summarized by the four Cs: costs, cash, capital, and control. e. In times of high profitability and abundant financial resources, the finance function tends to decline in importance. 3. Which of the following is not a hypothesized benefit of integrated delivery systems...
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...Takyi Outline of Presentation Definition of Key Terms Introduction Research Problems Methodology Key Findings Study Gaps For Future Research Research Questions Literature Review Conclusion and Remarks Definition of Key Terms Financial markets: This is a market where financial instruments are traded. Emerging markets: An emerging market economy (EME) is defined as an economy with low to middle per capita income Financial policy: Criteria describing a corporation's choices regarding its debt/equity mix, currencies of denomination, maturity structure, method of financing investment projects, and hedging decisions with a goal of maximizing the value of the firm to some set of stockholders. Definition of Key Terms Capitalization: The total dollar market value of all of a company's outstanding shares. Capital structure: Refers to the way a corporation finances its assets through equity and long-term debt. Financial structure: The structure of a company's sources of financing, including shareholders' equity, long- and short-term debt, and accounts payable. Research Problem The financial markets in emerging markets have undergone considerable growth in recent times, mainly as a result of the trade and financial liberalization policies adopted by these countries over the past decade (Agarwal and Mohtadi, 2004). This development has expanded the financing options available to firms, but raises the important policy question of...
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...Accredited Tertiary Courses Listing 2012 Accredited Tertiary Courses Listing 2012 – as at 26 September 2012 1 2012 Accredited Undergraduate Courses AUSTRALIAN CAPITAL TERRITORY The Australian National University University of Canberra NEW SOUTH WALES Australian Catholic University Australian Institute of Higher Education Avondale College Charles Sturt University Kings Own Institute Macquarie University Southern Cross University Top Education Institute The University of New England The University of New South Wales The University of Newcastle The University of Sydney University of Technology, Sydney University of Western Sydney University of Wollongong Williams Business College NORTHERN TERRITORY Charles Darwin University QUEENSLAND Australian Catholic University Bond University Central Queensland University Christian Heritage College Griffith University James Cook University Queensland University of Technology The University of Queensland The University of Southern Queensland University of the Sunshine Coast SOUTH AUSTRALIA Flinders University Kaplan Business School The University of Adelaide University of South Australia Open Universities (conferred by Uni of SA) TASMANIA University of Tasmania VICTORIA Australian Catholic University Cambridge International College Carrick Higher Education Deakin University Holmes Institute Holmesglen Institute of TAFE La Trobe University Melbourne Institute of Technology Monash University Northern Melbourne Institute of TAFE RMIT...
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...Corporation Background Calpine Corporation, founded in 1984, was a wholly-owned subsidiary of a Swiss industial corporation, Electrowatt, affiliated with Credit Suisse Banking Group. By pursued the construction and operation of QF power plants on the IPP model, from 1984 to 1999, Calpine had created 22 plants with a combined capacity of 2,729 MW operating in seven states, and other 12 plants in various stages of development. What’s more, on 1998, the fixed assets had grown to $1712 million while $421 million on 1994. On September 1996, Calpine also took action to raise public equity. The IPO of Calpine bought $317 million at a price of $16 per share to the company. From 1984 to 1994, Calpine preferred to use method of project finance to do the construction of new plants. After 1994, the corporation changed its policy to retiring subsidiary project debt with parent-level, corporate debt issues. On 1999, after raised 5 corporation debt, the rate of Calpine was improved from B1/B to Ba2/BB. Industry Background The U.S. Electric power industry, with annual revenues of $296 billion and assets of $686 billion, was the country’s third largest industry while the first and second industries are automobiles and health care in 20 century. This industry consist of investor-owned utility controlled plants, the federal government controlled plants, municipal and cooperative electric companies controlled plants and other kinds of producers controlled plants, whiled 170 investor-owned utilities...
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...Sources of Business Finance ----------------------- |Finance method |Explanation |Benefits |Drawbacks | |Owner’s Funds |Business owners often have to use their|Savings are a good source of finance |There is always risk involved; the owner could | | |own personal savings to start a |because no interest has to be paid |lose his funds if the business is not successful. | | |business, particularly if they are a |whilst the money is being used. | | | |new sole trader. | |The owner may not have sufficient funds to start | | | |Business remains in full control of the|up the business. | | |Banks may no be willing to take the |owner. | | | |risk and invest in them. | | | |Retained Profits |This is the money retained in the |Using retained...
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