Defining Financial Terms 1 University of Phoenix Inthiravanh Amphonephong Defining Financial Terms FIN/370 Jason Bruno May 11, 2011 Defining Financial Terms 2 Financial Terms 1. FINANCE: A branch of economic that deals with resource management ROLE: Finance is any area of study that helps get manage or invest the money. There is business finance, investment finance, home finance, car finance, and many other types. For most people managing their own money, personal
Words: 1615 - Pages: 7
assets can be tangible or intangible. For example, house, building, equipment, inventories and durable goods. * Financial asset:- Assets that does not produce goods and services but generate income are called financial assets. For example, bonds, stocks, note, mortgage and other claims or real assets as well as securities. * Perfect capital market:- A perfect capital market exists if the following conditions hold:- * There is no transaction cast * There is no taxes * There
Words: 10444 - Pages: 42
EXPERIENCE Swap Trader, Toronto Dominion Securities • Swap & FX Trader: August 2009 - Present London, England Trading Interest Rate Derivatives: Full-time position trading interest rate swaps, FRAs, cross-currency swaps, gilts, FX as well as corporate bonds. Eurobond debt issuance combined with asset swapping to clients’ domestic currency facilitating low funding rates, mitigating currency and interest rate risk. Worked closely with origination and syndication team to issue Eurobonds. Sales and Trading
Words: 466 - Pages: 2
124 | 5.564 | 4.983 | a. Calculate the price for each bond as at the 9 June 2010 and your Date 2 using the yields given in the table b. .If you bought the bonds on the 9 June 2010 and sold them on your Date 2, what dollar return did you make? c. Using a spreadsheet (Excel) and its duration formula, calculate the duration for all the bonds as at 9 June 2010. d. Comparingthetwosetsofrates,whatcanyousayaboutthetermstructure
Words: 368 - Pages: 2
undervalued, overvalued, or appropriately valued. 1.) Find an estimate of the risk-free rate by using www.bloomberg.com. Use the yield to maturity for 30-year U.S. Treasury bond. Hit the markets tab, click on link to government bonds. Be sure not to use the coupon rate. The yield to maturity for the 30-year U.S. Treasury bond is 3.43 as of April 3, 2012 at 3:08 pm. | COUPON | MATURITY | PRICE/YIELD | PRICE/YIELD CHANGE | TIME | 30-Year | 3.125 | 02/15/2042 | 94-08+ / 3.43 | -1-28 / 0.104 |
Words: 1030 - Pages: 5
Exercise 14-2 1. Discount = Par value - Issue price = $90,000 - $85,431 = $4,569 2. Total bond interest expense over the life of the bonds |Amount repaid | | | Six payments of $3,600 |$ 21,600 | | Par value at maturity | 90,000 | | Total repaid
Words: 694 - Pages: 3
Finance homework 1 Mini Case: a) Finance is the cornerstone of the free market. Corporate financial management is important to managers because it is critical to the economic health of every business. b) Evolution of organizational forms: 1) Startup – Proprietorship: an unincorporated firm owned by 1 person. i. Advantages: cheap and easy to start, minimal government regulations, not subjected to corporate taxation ii. Disadvantages: difficult to acquire capital
Words: 1195 - Pages: 5
0.07 $1,000 = $70. a. Current yield = Annual interest/Current price of bond = $70/$985.00 = 7.11%. b. N = 10; PV = -985; PMT = 70; FV = 1000; YTM = ? Solve for I/YR = YTM = 7.2157% 7.22%. c. N = 7; I/YR = 7.2157; PMT = 70; FV = 1000; PV = ? Solve for VB = PV = $988.46. 7-3 The problem asks you to find the price of a bond, given the following facts: N = 2 8 = 16; I/YR = 8.5/2 = 4.25; PMT = 45; FV = 1000.
Words: 8940 - Pages: 36
1. (TCO A) Which of the following statements is CORRECT? (Points : 10) It is generally more expensive to form a proprietorship than a corporation because, with a proprietorship, extensive legal documents are required. Corporations face fewer regulations than sole proprietorships. One disadvantage of operating a business as a sole proprietorship is that the firm is subject to double taxation, at both the firm level and the owner level. One advantage of forming a corporation
Words: 896 - Pages: 4
|1. |Wachowicz Corporation issued 15-year, noncallable, 7.5% annual coupon bonds at their par value of $1,000 one year ago. Today, the | | |market interest rate on these bonds is 5.5%. What is the current price of the bonds, given that they now have 14 years to | | |maturity? | | |
Words: 1348 - Pages: 6
