terms: bond indenture, par value, principal, maturity, call provision, and sinking fund. Bond indenture. Bond indenture is a legal contract for a publicly traded bond. The structure of this contract outline incentives explicitly by detailing responsibilities, constraints, penalties, and oversight required. For example, contracts may specify interest and principal payment timing and amounts. Par value. Par value denotes face value or designated value of a bond or stock. Par value of a bond is typically
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There are many different types of short term financing including trade credit financing, Bank credit financing, and commercial paper financing. Trade credit financing is the most popular and includes approximately 40% of short term financing. Trade credit financing is when the seller of the goods gives an extended time for payment usually about 30-60 days, and can sometimes offer a cash discount. Businesses would choose this type of financing for the cash discount and because it does not have
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Professor Mike Woodard Date: 03/23/2013 Task 1: Assessing loan options for AirNet Best Parts, Inc The Company needs to finance $8,000,000 for a new factory in Mexico. The funds will be obtained through a commercial loan and by issuing corporate bonds. Here is some of the information regarding the APRs offered by two well-known commercial banks. Bank | APR | Number of Times Compounded | National First | Prime Rate + 6.75% | Semiannually | Regions Best | 13.17 | Monthly | 1. Assuming
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PRUDENTIAL REGULATIONS FOR CORPORATE / COMMERCIAL BANKING (Updated on January 31, 2011) BANKING POLICY & REGULATIONS DEPARTMENT STATE BANK OF PAKISTAN Disclaimer: State Bank of Pakistan compiles a booklet of Prudential Regulations from time to time for convenience of users. Updated version of such a booklet containing amendments in the regulations made through circulars/Circular letters to date is being issued. Due care has been taken while incorporating amendments, however, errors and
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Interest on Cash Balances Administration Payable Commercial Paper Domestic Bonds - 15/03/2005 Domestic Bonds - 15/03/2007 Domestic Bonds - 15/03/2009 Domestic Bonds - 15/03/2014 Swaps Variation Margin - 3 Year Contract Variation Margin - 10 Year Contract Brokerage due Total Australian Dollars United States Dollars Euro Bonds - 15/03/2007 Euro Bonds - 15/03/2014 Swaps Forwards 0 Total United States Dollars Euros Euro Bonds - 15/03/2009 Swaps Forwards 14,838,797 14,838,797 Total Euros
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Annual Report Project – USAA An annual report is an audited corporate document that details the business activity and financial status of an individual company over the previous year. The key elements of an annual report are contained in its financial information. Within the financial information you’ll find the financial statements and Notes to Financial Statements. Include in this section is the Income Statement, Cash Flow Statement and Balance Sheet. These statements provide detailed figures
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Flexibility There are a wide variety of long-term debt financing options available to borrowers, such as mortgages, leases, reverse mortgages, and loan refinancing, which can be fine-tuned to meet the borrower's needs. This allows more flexibility and control over spending. For instance, a lease is a special type of long-term debt-financing instrument that allows you to benefit from the use of an asset in exchange for rental payments without having to purchase the asset. This is particularly useful
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May 4, 2013 Joe Rogers, GlobalREACH Capital Markets Blog Post Apple’s $17 billion bond issue dwarfs small business lending Why can't Small Businesses stock up on cheap cash, too? Last week Apple Computer borrowed $17 billion in one day from institutional investors via a very complex offering that demonstrated the depth and efficiency of the global capital market. Stan Schroeder reveals some insights in Mashable about how Apple, in one day, went from being debt-free to having obligations equal
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after underwriting and flotation expenses? 20,000,000 = 20.90x – 150,000 20,150,000 = 20.90 x x = 964,115 Bond Refunding Problem - Thompson Enterprises Thompson Enterprises has $5,000,000 of bonds outstanding. Each bond has a maturity value of $1,000, an annual coupon of 12.0%, and 15 years left to maturity. The bonds can be called at any time with a premium of $50 per bond. If the
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Explain why zero-coupon bonds have a longer duration than coupon bonds of equivalent maturity and yield. Zero coupon bonds do not pay interest during the life of the bonds. But instead an investor will buy the zero bonds discount of its face value, and the amount of the bond will be worth face value when it comes due or matures. The buyer receives this money in one lump sum equal to the initial investment. According to the U.S. securities and exchange “zero coupon bonds pay no interest until maturity;
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