Bonds and Treasuries

[Debit] Investment in Melissa Company 1480000

[Credit]Cash/Bank 1480000

Bonds are generally debt investment whereby an investor loans a certain amount of money, for a certain amount of time with a certain interest to a company.

And Govt bonds are the bonds issued by the National govt, generally promising to pay certain amount on certain date with a periodical interest payment.

"A Treasury Bond is a way for the US federal government to manage its debt. They are issued directly but the US government, and sold to anyone interested in buying them. By buying them, you are, essentially, loaning your money to the US government. When the bond matures, the government pays you back the amount they borrowed, plus a guaranteed interest amount. They are among the safest way to invest your money."

"A fixed rate bond is a bond that has a fixed rate, whereas a floating rate bond can change due to different variables. BNET is a great business resource that will help with learning about fixed and floating rate bonds."

It means "pay on death" and it's used to declare a beneficiary for the bond.

i need the answer...please

Nothing, but its coupon rate would likely decrease as it is now considered a riskier asset.

94.35

Savings bonds are sold in different denominations (also known as face value). The purchase price (also known as the issue price) of a savings bond is half of the face value.

An EE savings bond purchased twenty years ago in December 1993 for $250 with a face value of $500 is currently worth $536.00. The current value of the bond is based on the original issue price of $250 plus $286 in accrued interest.

EE savings bonds issued in 1993 have a final maturity date of 30 years and pay a fixed rate of 4.0%. A savings bond purchased in December 1993 would have a final maturity date of December 2023.

The tax liability for interest on a savings bond can be deferred until the bond is cashed in.

The exact details on any particular savings bond can be found by going to the official government website . In order to obtain information on a savings bond, you must enter the bond series, the denomination, the bond serial number and the issue date.

depends on the collateral supporting the bond.

hm treasury

Most companies retire debentures by issuing another set of debentures, hence, most companies don't park funds for retiring debentures by creating any fund. The bond market will surely get affected negatively by such a move of the ministry of corporate affairs.

Section 117C of the Companies Act, 1956, requires every company issuing debentures to create a debenture redemption reserve (DRR) for the redemption of such debentures and transfer an 'adequate' amount from its profits every year to such DRR until the issued debentures are redeemed. Hence, every issue of redeemable debentures requires creation of a DRR. The said Section, however, does not provide the meaning of the word 'adequate'. In the year 2002, the ministry of corporate affairs (MCA) issued a circular clarifying the meaning of 'adequate' and provided the percentage which is mandatorily required to be transferred to DRR by certain class of companies. However, to develop the bonds market, MCA issued another clarification circular on 11 February 2013 (Circular 2013)

A 5% bond was purchased at $1150 and the maturity is 15 years. Calculating YTM would be based on all of this information. The total premium amount is $150 - divided over 15 years would give you $10 per year. That is the amount that is basically lost each year on the price - if held to maturity.

The way the formula is calculated is you take the yearly real interest - which is $50 and then subtract the lost above par yearly price of $10. This leaves you with a real yearly return of $40. Then divide $40 by the average price of the bond during it's life. Since par ($1000) is the redemption price and $1150 was the price that was paid - the median price would be $1075.

So $40 divided by $1075 would be the YTM = 3.72%

Discount bonds are calculated the same way - except the yearly discount is added on to the nominal interest payments. This would result in a higher YTM calculation.

Go to the bank with your Id and social security number and tell them you want to buy a savings bond

Yes, you can lose a stock, and you can lose a bond, but bonds are harder to lose, and can never decrease in value.

securities

A market is any space (including cyberspace) where exchanges of goods and services are made voluntarily by individuals, either through direct trade or the use of some form of currency. Markets have existed in rudimentary forms for centuries. More complex markets may require legal systems, clearly defined property rights, contracts, and oversight to work. In some ways, markets are empowering to individuals, because all choices are freely made by all of the participants, so markets are seen as mutually beneficial and enabling parties to interact without the use of force. Markets are seen as efficient ways to distribute goods and services, and to set prices within an economy. Some problems with markets include imbalances in power relationships that can result in one-sided outcomes, and poverty that bars individuals who cannot afford needed items from participating in the markets for those goods.

Yes you are able to cash your savings bonds at any age as long as your old enough to sign it.

To work out the best investment you really have to consider supply and demand. Look at how many people are wanting the "investment" and how many people are selling it. If demand is higher then supply than you have a good investment.

premium=(1-Recovery Rate)*(probability of default)

so if the premium is 15% and the recovery rate is 30%, then you can calculate the likelihood or probability of default.

It would be (.15)=(1-.30)*probability

Rearranging terms you get: probability=.21428

The Recovery Rate is the percentage of your original asset you'd recover under the default circumstance.

Bonds can be bought with set interest rates, meaning as time goes by, its yearly value goes up at a steady rate. Stocks, however, can jump up and down in value, depending on market value.

Pretty sure that depends on the interest rate at the time you purchase the EE series bonds. You can look up the value of EE bonds on the internet. You need the bond numbers and it will tell you when it was purchased and the current value and the percentage you are earning.

Less documentation and disclosure is required for 144A

$300 which is 10% of $3,000 is the amount you would have to pay.