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Bonds and Treasuries
A note whereby the investor loans a corporation or government money at a set interest rate over a predetermined time period.
1,619 Questions
Why is the money supply decreased when the Fed sells some of its Treasury bonds?
Selling bonds decreases the amount of money that bondholders have in the bank.
How do you calculate the issue price of a bond?
i have 50.00 savings bond issued June 1985 how much is it worth
Why are federal securities such as bonds popular with investors?
Federal securities such as bonds are popular with investors because it is safer than stocks. It also yields higher interest rates per year than other instruments such as T-bills or stocks.
A mature market is a type of consumer market. This market is unique in the fact that it has become stable because there is no innovations or new growth.
There are two major risks associated with investing in bonds
1. Interest rate risk - If the prevailing interest rates in the markets are lower than the rates when the bonds were issued, then the returns on our bonds may be below our expectations and calculations
2. Counterparty risk - This is the risk wherein, the bond issuer defaults on his payments or declares bankruptcy.
Bond prices and interest rates are directly or positively related?
The price is inversely related to yields (interest rates). This means as rates rise, prices fall.
How much is a 50 dollar savings bond worth after 7 years?
The value of a $50 savings bond after 7 years depends on the type of bond. For Series I and Series EE savings bonds, interest is compounded semiannually, and the value increases over time. Typically, you can check the U.S. Department of the Treasury's website for the current value, as it varies based on the bond's issue date and interest rates. In general, a $50 bond could be worth significantly more than its face value after 7 years, often around $75 to $100, depending on interest rates.
How much currency does the United States Treasury print per day?
"The Bureau of Engraving and Printing (BEP) produced 649,600,000 U.S. notes in February of 2008 worth a total of $13,779,200,000. ... Spread across the 29 days in February and counting weekends and holidays, that averages to nearly 22.5 million notes per day with a face value of approximately $475 million." -
"During fiscal year 2007, [BEP] produced approximately 38 million notes a day with a face value of approximately $750 million." --From the U.S. Treasury itself at treas.gov
I believe the above sources are indicating that money is printed over the course of a 29 day period, rather than every day of the year. If this is the case, it makes the per-day figure appear much higher than if it were printed throughout the year, as might be assumed if not otherwise noted. If the BEP printed money 365 days in a year, then the amount printed would be approximately $37.75 million per day in 2008.
Types of debentures in company law?
What is a Debenture?
A Debenture is a debt security issued by a company (called the Issuer), which offers to pay interest in lieu of the money borrowed for a certain period. In essence it represents a loan taken by the issuer who pays an agreed rate of interest during the lifetime of the instrument and repays the principal normally, unless otherwise agreed, on maturity.
These are long-term debt instruments issued by private sector companies. These are issued in denominations as low as Rs 1000 and have maturities ranging between one and ten years. Long maturity debentures are rarely issued, as investors are not comfortable with such maturities
Debentures enable investors to reap the dual benefits of adequate security and good returns. Unlike other fixed income instruments such as Fixed Deposits, Bank Deposits they can be transferred from one party to another by using transfer from. Debentures are normally issued in physical form. However, corporates/PSUs have started issuing debentures in Demat form. Generally, debentures are less liquid as compared to PSU bonds and their liquidity is inversely proportional to the residual maturity. Debentures can be secured or unsecured.
What are the different types of debentures?
Debentures are divided into different categories on the basis of: (1)convertibility of the instrument (2) Security
Debentures can be classified on the basis of convertibility into:
· Non Convertible Debentures (NCD): These instruments retain the debt character and can not be converted in to equity shares
· Partly Convertible Debentures (PCD): A part of these instruments are converted into Equity shares in the future at notice of the issuer. The issuer decides the ratio for conversion. This is normally decided at the time of subscription.
· Fully convertible Debentures (FCD): These are fully convertible into Equity shares at the issuer's notice. The ratio of conversion is decided by the issuer. Upon conversion the investors enjoy the same status as ordinary shareholders of the company.
· Optionally Convertible Debentures (OCD): The investor has the option to either convert these debentures into shares at price decided by the issuer/agreed upon at the time of issue.
On basis of Security, debentures are classified into:
· Secured Debentures: These instruments are secured by a charge on the fixed assets of the issuer company. So if the issuer fails on payment of either the principal or interest amount, his assets can be sold to repay the liability to the investors
· Unsecured Debentures: These instrument are unsecured in the sense that if the issuer defaults on payment of the interest or principal amount, the investor has to be along with other unsecured creditors of the company.
What is another name for stocks and bonds?
Another word for Stocks is Equities; another word for Bonds is Fixed Income.
Other words for stocks are shares, investments, and issue.
Other words for bonds are sureties, securities, promise to pay, collateral, earnest, guaranty, and asset.
What does it mean to liquidate your stocks?
When you liquidate you stocks, it simply means that you are selling all of them. The term liquidate can also be applied to businesses. When a business liquidates, they are in the process of selling everything that is under its ownership.
What was the average savings interest rate 1993?
The average interest rate on savings accounts is 3.5 to 4%
Can you Brief about core working capital?
A business requires funds for day to day working. This fund is called as working capital fund. This helps a business enterprise to borrow raw material, convert it into finished goods and sell it and get back funds. This is the cycle of working capital. However you may try a minimum of this capital remains in the business in some form or the other.
The minimum level of working capital that is required to keep the cycle going on is called as core working capital. It is permanent part of the business. It can be used for funding long term assets because of its fixed permanent nature.
How do bond ratings influence which bonds investors buy?
In simple terms, the better the rating the safer the investment.
First richest black man in the world?
try A.H. Gaskins or something Gaskins from I believe Alabama. Mine worker turned insurance agent and mortician.I don't remember the time line on his story. Marcellus Patterson pattersonm33@hotmail.com
If a bond price increases what happens to yield to maturity?
The YTM on a Bond versus it's Price is inversely related. Thus when the Price of the Bond Increases, the YTM Decreases.
The definition of Credit Union is: a cooperative group that makes loans to its members at low rates if interest. Reference: Random House Webster's College Dictionary.
