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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
The prices of bonds will fall and yields to maturity (or call date) will rise, since investors will require greater yields on their investments to offset the expected increase in inflation.
Statutory Liquidity Ratio or SLR refers to the amount that all banks require to maintain in cash or in the form of Gold or approved securities. Therefore a SLR bond is a government issued bond, investment in which is treated as liquid under SLR requirements for banks. Often banks prefer investing in some or the other interest yielding security rather than keeping cash. If banks can invest in a bond and still that investment is treated as liquid for meeting the SLR ratio than the bank would invest in such a bond rather than staing uninvetsed. Normally SLR bonds are seen as goverment's instrument to fulfill their financial commitments. As by qualifying a bond as an SLR bond it makes it easier for them to raise money since banks are attracted towards it.
Debentures function more or less like bonds. One can also term debentures as a variant of bonds. Debentures are issued by a company which offers to pay interest in lieu of the money borrowed for a pre-specified period. In essence, it represents a loan taken by the issuer who pays an agreed rate of interest throughout the life of the instrument and repays the principal normally, unless otherwise agreed, on maturity. Bonds on the other hand are more secured than debenture. As a debenture holder, you provide unsecured loan (most of the times debentures are unsecured in nature) to the company. Debentures carry a higher rate of interest as the company does not offer any collateral to you for your money. For this reason bond holders receive a lower rate of interest but are more secure in nature.
How much is a 25 dollar series e savings bond worth now that was bought in 1970?
how much is a 1000 bond bought in 1979 worth.
What are the right of debenture holder?
To receive interest/redemption in due time.
To receive a copy of the trust deed on request.
To apply for winding up of the company if the company fails
to pay its debt.
To approach the Debenture Trustee with your grievance.
You may note that the above mentioned rights may not necessarily be absolute. For example, the right to transfer
securities (in physical mode) is subject to the company's right to refuse transfer as per statutory provisions.
How much is a fifty dollar savings bond bought in 1990 worth?
Go here
http://www.treasurydirect.gov/indiv/tools/tools_savingsbondcalc.htm
What is the EQ yield of a municipal bond?
The taxable equivalent yield for a muni bond shows what you would have to earn on a taxable bond to equal the after tax return on a muni bond. Example, a muni bond has a EQ yield of 5% and you pay 20% federal income tax. The muni would actually pay interest of 4%. This is because if a taxable bond pays 5% and you pay 20% taxes, you would actually get after tax 4% (20% of 5% is 1%. 5%-1%=4%).
Can Husband of a deceased owner of US Savings Bond deposit it to their bank account?
The estate will have to cash the savings bond in and then distribute the earnings.
What are the disadvantages of debentures?
Debentures hold greater risk because the company could eventually go out of the business. so this type of investment should be done very carefully.
Which is a good investment bond during a recession?
I recently researched this online and "Inflation-protected bonds" seem like a good choice. Your principal will be somewhat protected and you'll thus be able to ride out the economic woes of the US without losing your shirt savings-wise.
When you purchase a 100 savings bond is it worth it a 100?
No, you purchase it at a discount and it becomes worth 100 dollars in some number of years into the future
A company issues bonds to raise money. When you buy a bond, you are lending the company money. The company promises to pay back your money some number of years into the future. They also pay you interest during the entire loan period. Outstanding bonds are bonds that the company has yet to fully pay back.
Is preferred stock considered to be more like common stock or bonds?
Preferred stock would be more like Common stock, because the value can go up or down. Bonds have a set value.
Probably the core function of a treasury department at any bank is the measuring, monitoring, and controlling of interest rate risk (IRR). IRR is the risk that changes in prevailing interest rates will adversely impact the value of the bank's assets and liabilities.
The actual level of involvement of a treasury department in interest rate risk management varies by institution, but generally speaking, the department would forecast net interest income (NII) and measure the sensitivity of NII to changes in rates. Typically the department would employ a variety of standard and proprietary models to measure this risk.
The output of this analysis would be supplied to the institution's ALCO (Asset/Liability Management Committee). ALCO is responsible for overseeing a variety of asset and liability (ALM) activities including the establishment of guidelines for the bank's risk tolerance levels.
The treasury department may further be tasked with ensuring IRR stays within guidelines set by ALCO by entering into a variety of financial transactions, such as interest rate swaps, futures contracts, and so on.
There are other functions often housed within the treasury department, including a process known as funds transfer pricing (FTP). At a high-level, the FTP process centrally manages the funding requirements of the entire bank in lieu of having each division fund its own balance sheet.
Additionally, the department may assume responsibility for monitoring the institution's risk capital levels including the rules set forth in Basel II.
What happens to stocks and bonds after the stockholder dies?
They become part of the deceased persons estate If the decedent had a will, the stocks and bonds pass on to the wills beneficiaries If there was no will, the state intestacy laws determine who gets the stocks and bonds
What are the differences between share and debenture?
SHARES- 1.share holder is the real owner of the company.share holder have not fixed dividend rate.share holder have not maturity period.share are not redeemed.shares are more volatile.share holder have high risk.share holder have high return.share holder have right on residial income.
DEBENTURE-1.debenture holder is the creditor of a company.they have fixed rate of interest.they have a maturity period.they dont have right to vote.debentures are redeemed.they are not volatile.they have no risk.they have low return.
There are three adjustments that have to be made in going from annual to semi-annual bond analysis. These three adjustments are to divide the annual interest rate by two, multiply the number of years by two, and divide the annual yield to maturity by two.
What are infrastructure bonds?
Bonds issued by a local government to get funds that will be used for infrastructure in a Real Estate development
How does the company raise capital via stocks and bonds?
Stocks and Bonds are market instruments that are used by companies to raise capital for their operations. The company would have to register with the local supervisory body (SEBI in case of India) and get its approval to float a stock or bond offering. Then the pricing of the instrument would be decided and a public offer would be floated. Any investor (Public) who is interested in investing in the company would apply to buy the stocks or bonds. Based on first come first served and also proportional allocation, the stock/bond units would be allocated to the investors. Let us say a company is issuing 10 lakh shares of Rs. 10 each then it would ideally be raising a capital of 100 lakhs.
Which is more liquid stocks bonds?
Stocks are considered much more liquid than bonds. This is because stocks are riskier and the value of the stock is determined by the present market.
= CUSIP number 999999816 bond =
