What is the advantages and disadvantages of debentures?
You get a fixed preannounced return on your investment.
You do not gain from the performance of the company.
You may be affected by the inability of the company to honor its commitment to you by way of payment.
You have a priority claim over the shareholders in case of a company going bankrupt. Country specific laws apply.
Some debentures are converted into equity shares after a specific period
Note: Please read the terms and conditions carefully.
What is the relationship between GDP and bond prices?
Gross Domestic Product (GDP), which is the statistic used to measure the economy. Bond Prices are usually expressed at a percent of face and are usually quoted in 30 seconds.
How can Treasury bonds can have an effect on the size of the money supply?
The Federal Reserve Bank can buy and sell Treasury bonds to raise or lower bank deposits
How can interest rate affect bond liquidity?
If interest rate has been increased, the price of the bond falls.... If price of the bond falls, the yield that can be earned increases... So, if interest rate increases, it will lead to increases in yield which forces people in investing in the bond.....And liquidity will be more in bond market... Plz confirm the information.........................
The income from bonds is taxed, unless the bonds are exempt from federal tax (municipal bonds) and/or state tax (varies by state). If there is gain on the sale of a bond (you receive more than you originally paid for it), the gain is taxable.
Fixed rate bonds are a 'security' paying a fixed periodical 'coupon' or interest payment, say 6%. After some defined period, the bond will repay its 'face value' being equivalent of the principal in a loan.
Where can you sell old savings bonds?
The short answer is you can't sell old savings bonds. If the bonds are in your name, you take them to the bank and cash them as though they are checks. If they're NOT in your name, you need to return them to their rightful owner.
924.28
What is a 10.00 war bond series E dated may 1945 worth?
Total Price Total Value Total Interest YTD Interest
$7.50 $44.62 $37.12 $0.00
"Behaviour" (and I like your correct English spelling) describes the way tht the price moves.
The following describes some of the more technical terms used, by option traders to describe 'behaviour'
Whether the price moves a lot or only a little is described as 'Volatility'.
If the price is not 'normally distributed' it is reffered to as 'Kurtosis' or Kurtic'
If the price is moving up or down, is described as 'Directionality' or 'Skew'.
Why is the price of a bond inversely related to the rate of interest?
A bond pays fixed (defined in the bond) cashflows at discrete points in the future. If interest rates are hight, these future fixed amounts are of lesser value in the present than when interest rates are low. For example, if I were to pay you $100 in one year and interest rates are 10%, then the value of the money, in today's value is $90.91. If interest rates were zero, then it would be worth $100 today. A bond's value is merely the sum of a whole bunch of examples like this.
it say the tax 40%, i got same question about Percy motors
Percy Motors has a target capital structure of 40 percent debt and 60 percent common equity with no preferred stock The yield to maturity on the company's outstanding bonds is 9 percent and its tax rate is 40%. Percy's CFO estimates that the company's wacc is 9.96%what is the Percy cost of common equity?
-the answer-we know that :capital structure of 40 percent debt and 60 percent common equity with no preferred stock The yield to maturity on the company's outstanding bond is 9%the tax 40%and wacc is 9.96%
wd= 40%wc= 60%rd=9%
kd= rd(1-T) = 9 (1-0.4) = 5.4%
WACC = Wd.Kd+ Wp.Kp+ Wc.Kc0.0996= 0.4 x 0.054+0 x 0 +0.6 x Kc0.0996 = 0.0216 + 0.6Kc0.0996-0.0216 = 0.6Kc0.13 = KcKc= 13%
so....the Percy motors of common equity is 13%
On a savings bond what does POD mean?
It means "pay on death" and it's used to declare a beneficiary for the bond.
What is a 100.00 US series EE bond worth bought in August 1997?
http://www.treasurydirect.gov/BC/SBCPrice
What age is required to buy or own stock in a corporation?
You may own stock in a corporation at birth. The stock may be transferred in your name the same day your birth certificate is filled out. It is not necessary to actually have a birth certificate to own stock.
How old you must be to purchase stock on your own depends upon how old you are when you learn to speak and have acquired the necessary capital. You may purchase penny stocks for next to nothing, though you may be required to obtain the consent of a parent or guardian to make such an investment.
My daughters invested in mutual funds before they were seven years old.