In this revision video we work through some numerical examples of the inverse relationship between the market price of fixed-interest government bonds and the yields on those bonds. Government bonds are fixed interest securities. This means that a bond pays a fixed annual interest – this is known as the coupon The coupon (paid in £s, $s, Euros etc.) is fixed but the yield on a bond will vary The yield is effectively the interest rate on a bond. The yield will vary inversely with the market price of a bond 1.When bond prices are rising, the yield will fall 2.When bond prices are falling, the yield will rise - - - - - - - - - MORE ABOUT TUTOR2U ECONOMICS: Visit tutor2u Economics for thousands of free study notes, videos, quizzes and more: https://www.tutor2u.net/economics A Level Economics Revision Flashcards: https://www.tutor2u.net/economics/store/selections/alevel-economics-revision-flashcards A Level Economics Example Top Grade Essays: https://www.tutor2u.net/economics/store/selections/exemplar-essays-for-a-level-economics
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What is FIXED RATE BOND? What does FIXED RATE BOND mean? FIXED RATE BOND meaning - FIXED RATE BOND definition - FIXED RATE BOND explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. In finance, a fixed rate bond is a type of debt instrument bond with a fixed coupon (interest) rate, as opposed to a floating rate note. A fixed rate bond is a long term debt paper that carries a predetermined interest rate. The interest rate is known as coupon rate and interest is payable at specified dates before bond maturity. Due to the fixed coupon, the market value of a fixed-rate bond is susceptible to fluctuations in interest rates, and therefore has a significant amount of interest rate risk. That being said, the fixed-rate bond, although a conservative investment, is highly susceptible to a loss in value due to inflation. The fixed-rate bond’s long maturity schedule and predetermined coupon rate offers an investor a solidified return, while leaving the individual exposed to a rise in the consumer price index and overall decrease in their purchasing power. The coupon rate attached to the fixed-rate bond is payable at specified dates before the bond reaches maturity; the coupon rate and the fixed-payments are delivered periodically to the investor at a percentage rate of the bond’s face value. Due to a fixed-rate bond’s lengthy maturity date, these payments are typically small and as stated before are not tied into interest rates. Unlike a fixed-rate bond, a floating rate note is a type of bond that contains a variable coupon that is equal to a money market reference rate, or a federal funds rate plus a specified spread. Although the spread remains constant, the majority of floating rate notes contains quarterly coupons that pay-out interest every 3 months with variable percentage returns. At the beginning of each coupon period, the rate is calculated by adding the spread with the reference rate. This structure differs from the fixed-bond rate which locks in a coupon rate and delivers it to the holder semi-annually over a course of multiple years. Bonds generally provide higher rates of interest than other bank accounts, so fixed rate bond accounts are ideal for people who have spare money that they can afford to lock away for a fixed period of time. There are a number of factors that you need to be aware of before choosing your account, for example, some accounts offer interest that it adds onto your balance monthly, which then accumulates more interest throughout the year based on the total balance. Other accounts pay the interest owed when the term ends, or pay the interest into a separate savings account on a monthly basis, so you will only be paid interest on the opening balance. Purchasing a fixed rate bond is knowing, from the very start, what to expect out of the investment. As such, beginners in the investment world, as well as more experienced but conservative ones see this as a good and stable option. Those who are not very well-versed in investments could benefit, because it would no longer becomes necessary to monitor each change in the economy that might have a detrimental effect to the expected return of the bond.
Views: 733 The Audiopedia
Find out more about exchange-traded funds with us at the https://www.fidelity.com/learning-center/investment-products/etf/overview To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ------------------------------------------------------------------------------------------ Fixed income can be a critical part of nearly every well-diversified portfolio. Used correctly, fixed income can add diversification and a steady source of income to any investor’s portfolio. But how do you choose the right fixed-income ETF? The key to choosing the right fixed-income ETF lies in what it actually holds. U.S. bonds or international bonds? Government securities or corporate debt? Bonds that come due in two years or 20 years? Each decision determines the level of risk you’re taking and the potential return. There are many types of risks to consider with bond investing. Let’s talk more about two in particular: Credit risk and Interest-rate risk. Determining the level of credit risk you want to assume is an important first step when choosing a fixed-income ETF. Do you want an ETF that only holds conservative bonds—like bonds issued by the U.S. Treasury? Or do you want one holding riskier corporate debt? The latter may pay you a higher interest rate, but if the company issuing the bond goes bankrupt, you’ll lose out. ETFs cover the full range of available credit. Look carefully at the credit quality composition of the ETFs underlying holdings, and don’t be lured in by promises of high yields unless you understand the risks. Bonds are funny. Intuitively, you would assume that higher interest rates are good for bondholders, as they can reinvest bond income at higher prevailing interest rates. But rising interest rates may be bad news, at least in the short term. Imagine that the government issues a 10-year bond paying an interest rate of 2%. But shortly thereafter, the U.S. Federal Reserve hikes interest rates. Now, if the government wants to issue a new 10-year bond, it has to pay 3% a year in interest. No one is going to pay the same amount for the 2% bond as the 3% bond; instead, the price of the 2% bond will have to fall to make its yield as attractive as the new, higher-yielding security. That’s how bonds work, like a seesaw: As yields rise, prices fall and vice versa. Another important measure to consider when looking at interest rate risk is duration which helps to approximate the degree of price sensitivity of a bond to changes in interest rates. The longer the duration, the more any change in interest rates will affect your investment. Conversely, the shorter the duration, the less any change in interest rates will affect your investment. Let’s review a few other considerations when looking at fixed income ETFs. First, expense ratios: Because your expected return in a bond ETF is lower than in most stock ETFs, expenses take on extra importance. Generally speaking, the lower the fees, the better. Second, tracking difference: It can be harder to run a bond index fund than an equity fund, so you may see significant variation between the fund’s performance and the index’s returns. Try to seek out funds with low levels of tracking difference, meaning they track their index well. Finally, some bonds can be illiquid. As a result, it’s extra important to look out for bond ETFs with good trading volumes and tight spreads. There are other factors to watch for too, but these are the basics. ETFs can be a great tool for accessing the bond space, but as with anything, it pays to know what you’re buying before you make the leap. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 723251.2.0
Views: 57237 Fidelity Investments
UPDATE: You can also find the YTM by trial and error. If you plug in 0.06 for the YTM in the equation this gives you $91,575, which is lower than $92,227. YTM = 0.058 gives you $92,376, which is a little bit higher than $92,227. YTM = 0.0585 gives you $92,175, but YTM = 0.0584 gives you $92,215 which is very close to $92,227. Thus, 5.84% is the approximate YTM This video explains how to calculate the yield-to-maturity of a coupon bond. A comprehensive example is provided that shows the formula for calculating the yield, but the video also provides a Microsoft Excel formula that provides an easier means of determining the yield. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 75447 Edspira
OMG wow! Clicked here http://mbabullshit.com I'm shocked how easy, bond valuation video.. What is a Bond? Basically, a bond is a certificate which proves that a company borrowed money from you and now owes you money. Owning a bond is a way to earn interest payments instead of putting your money in a bank. Therefore, if a bond can give you high interest coupon payments compared to bank interest payments, a bond value should be high. On the other hand, if a bond will give you small coupon payments compared to bank interest, the bond value should be low. A bond can be bought either from the original company which issues the bond, or from people who already bought the bond from the corporation, but who want to sell the bond before it expires because they don’t want to wait too long before they get back their original investment So to find the theoretical value of a bond, we need to think about the bond’s interest coupon payments compared to bank interest payments, the bond’s face value, and the length of time before maturity when you get back the full face value of the bond. Sears Bond photo credit: Tom Spree via Wikipedia Creative Commons
Views: 87812 MBAbullshitDotCom
Views: 919 Jennifer Hawrylo
What it means to buy a bond. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/corporate-debt-versus-traditional-mortgages?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 513540 Khan Academy
http://www.subjectmoney.com http://www.subjectmoney.com/definitiondisplay.php?word=Bond%20Pricing In this video we show you how to calculate the value or price of a bond. We teach you the present value formula and then use examples to discount the coupon payments and principle payment to their present value. We also show you how to solve the price of a semi-annual bond. In this case you would multiply the periods by two and divide the YTM and coupon payments by 2. We also show you how to solve the accrued interest of a bond to find out what it would sell for at a date that is not on the exact coupon payment date. https://www.youtube.com/user/Subjectmoney https://www.youtube.com/watch?v=7zCqoED8MVk http://www.roofstampa.com hjttp://roofstampa.com http:/www.subjectmoney.com http://www.excelfornoobs.com
Views: 84345 Subjectmoney
This video demonstrates how to calculate the yield-to-maturity of a zero-coupon bond. It also provides a formula that can be used to calculate the YTM of any zero-coupon bond. Edspira is your source for business and financial education. To view the entire video library for free, visit http://www.Edspira.com To like us on Facebook, visit https://www.facebook.com/Edspira Edspira is the creation of Michael McLaughlin, who went from teenage homelessness to a PhD. The goal of Michael's life is to increase access to education so all people can achieve their dreams. To learn more about Michael's story, visit http://www.MichaelMcLaughlin.com To follow Michael on Facebook, visit https://facebook.com/Prof.Michael.McLaughlin To follow Michael on Twitter, visit https://twitter.com/Prof_McLaughlin
Views: 35574 Edspira
Why bond prices move inversely to changes in interest rate. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/treasury-bond-prices-and-yields?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 528130 Khan Academy
This video will show you how to calculate the bond price and yield to maturity in a financial calculator. If you need to find the Present value by hand please watch this video :) http://youtu.be/5uAICRPUzsM There are more videos for EXCEL as well Like and subscribe :) Please visit us at http://www.i-hate-math.com Thanks for learning
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The bond market moves when expectations change about economic growth and inflation. Unlike stocks, whose future earnings are anyone's guess, bonds make fixed payments for a certain period of time. Investors decide how much to pay for a given bond based on how much they expect inflation to erode the value of those fixed payments. The higher their expectations of inflation, the less they will pay for bonds. The lower they expect inflation to be, the more they will pay. In Bond market, lower prices correspond to higher yields, and higher prices correspond to lower yields. When prices fall, yields rise, and vice versa. Find us on Social Media and stay connected: Facebook Page - https://www.facebook.com/InvestYadnya Facebook Group - https://goo.gl/y57Qcr Twitter - https://www.twitter.com/InvestYadnya
Views: 41280 Yadnya Investment Academy
This video explains how to calculate a bond that sells at a discount. It shows the corresponding journal entries on the original sale and interest payments. It also shows how to prepare the amortization table and explains what the numbers represent.
Views: 26224 mattfisher64
Given four inputs (price, term/maturity, coupon rate, and face/par value), we can use the calculator's I/Y to find the bond's yield (yield to maturity). For more financial risk videos, visit our website! http://www.bionicturtle.com
Views: 125883 Bionic Turtle
Part I of the introduction to mortgage-backed securities. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-backed-securities-ii?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/derivative-securities/mort-backed-secs-tut/v/mortgage-back-security-overview?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: In many commodities markets, it is very helpful for buyers or sellers to lock-in future prices. This is what both forwards and futures allow for. This tutorial explains how they work and what the difference is between the two. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 448039 Khan Academy
Help us make better videos: http://www.informedtrades.com/donate Trade stocks and bonds with Scottrade, the broker Simit uses: http://bit.ly/scottrade-IT (see our review: http://bit.ly/scottrade-IT2) KEY POINTS 1. Bond prices and bond yields move in opposite directions. When bond prices go up, that means yields are going down; when bond prices go down, this means yields are going up. Mathematically, this is because yield is equal to: annual coupon payments/price paid for bond A decrease in price is thus a decrease in the denominator of the equation, which in turn results in a larger number. 2. Conceptually, the reason for why a decrease in bond price results in an increase bond yields can be understood through an example. a. Suppose a corporation issues a bond to a bondholder for $100, and with a promise of $5 in coupon payments per year. This bond thus has a yield of 5%. ($5/$100 = 5%) b. Suppose the same corporation then issues additional bonds, also for $100 but this time promising $6 in coupon payments for year -- and thus yielding 6%. No rational investor would choose the old bond; instead, they would all purchase the new bond, because it yielded more and was at the same price. As a result, if a holder of the old bonds needed to sell them, he/she would need to do so at a lower price. For instance, if holder of the old bonds was willing to sell it at $83.33, than any prospective buyer would get a bond that earned $5 in coupon payments on an $83.33 payment -- effectively an annual yield of 6% (5/83.33). The yield to maturity could be even higher, since the bond would give the bondholder $100 upon reaching maturity. 3. The longer the duration of the bonds, the more sensitivity there is to interest rate moves. For instance, if interest rates rise in year 3 of a 30 year bond (meaning there are 27 years left until maturity) the price of the bond would fall more than if interest rates rise in year 3 of a 5 year bond. This is because an interest in interest rates reduces the relative appeal of existing coupon payments, and the more coupon payments that are remaining, the more interest rate fluctuations will impact the price of the bond. 4. Lastly, a small note on jargon: when investors or commentators say, "bonds are up," (or down) they are referring to bond prices. "Bonds are up" thus means bond prices are up and yields are down; conversely, "bonds are down" means bond prices are down and yields are up.
Views: 62314 InformedTrades
Duration tells investors the length of time, in years, that it will take a bond's cash flows to repay the investor the price he or she paid for the bond. A bond's duration also tells investors how much a bond's price might change when interest rates change i.e. how much risk they face from interest rate changes.
Views: 97293 Investopedia
In this section, we briefly look at bonds issued by governments and also at bonds with unusual features. GOVERNMENT BONDS The biggest borrower in the world—by a wide margin—is everybody’s favorite family member, Uncle Sam. In early 2014, the total debt of the U.S. government was $17.5 trillion, or about $55,000 per citizen (and growing!). When the government wishes to borrow money for more than one year, it sells what are known as Treasury notes and bonds to the public (in fact, it does so every month). Currently, outstanding Treasury notes and bonds have original maturities ranging from 2 to 30 years. Most U.S. Treasury issues are just ordinary coupon bonds. There are two important things to keep in mind, however. First, U.S. Treasury issues, unlike essentially all other bonds, have no default risk because (we hope) the Treasury can always come up with the money to make the payments. Second, Treasury issues are exempt from state income taxes (though not federal income taxes). In other words, the coupons you receive on a Treasury note or bond are taxed only at the federal level. For information on municipal bonds including prices, check out emma.msrb.org. State and local governments also borrow money by selling notes and bonds. Such issues are called municipal notes and bonds, or just “munis.” Unlike Treasury issues, munis have varying degrees of default risk, and, in fact, they are rated much like corporate issues. Also, they are almost always callable. The most intriguing thing about munis is that their coupons are exempt from federal income taxes (though not necessarily state income taxes), which makes them very attractive to high-income, high–tax bracket investors. FLOATING-RATE BONDS The conventional bonds we have talked about in this chapter have fixed-dollar obligations because the coupon rates are set as fixed percentages of the par values. Similarly, the principal amounts are set equal to the par values. Under these circumstances, the coupon payments and principal are completely fixed. OTHER TYPES OF BONDS Many bonds have unusual or exotic features. So-called catastrophe, or cat, bonds provide an interesting example. In August 2013, Northshore Re Limited, a reinsurance company, issued $200 million in cat bonds (reinsurance companies sell insurance to insurance companies). These cat bonds covered hurricanes and earthquakes in the U.S. In the event of one of these triggering events, Northshore Re would receive cash flows to offset its loss. The largest single cat bond issue to date is a series of six bonds sold by Merna Reinsurance in 2007. The six bond issues were to cover various catastrophes the company faced due to its reinsurance of State Farm. The six bonds totaled about $1.2 billion in par value. During 2013, about $7.6 billion in cat bonds were issued, and there was about $20.6 billion par value in cat bonds outstanding at the end of the year. ncome bonds are similar to conventional bonds, except that coupon payments depend on company income. Specifically, coupons are paid to bondholders only if the firm’s income is sufficient. This would appear to be an attractive feature, but income bonds are not very common. A convertible bond can be swapped for a fixed number of shares of stock anytime before maturity at the holder’s option. Convertibles are relatively common, but the number has been decreasing in recent years. A put bond allows the holder to force the issuer to buy back the bond at a stated price. For example, International Paper Co. has bonds outstanding that allow the holder to force International Paper to buy the bonds back at 100 percent of face value if certain “risk” events happen. One such event is a change in credit rating from investment grade to lower than investment grade by Moody’s or S&P. The put feature is therefore just the reverse of the call provision. The reverse convertible is a relatively new type of structured note. One type generally offers a high coupon rate, but the redemption at maturity can be paid in cash at par value or paid in shares of stock. For example, one recent General Motors (GM) reverse convertible had a coupon rate of 16 percent, which is a very high coupon rate in today’s interest rate environment. However, at maturity, if GM’s stock declined sufficiently, bondholders would receive a fixed number of GM shares that were worth less than par value. So, while the income portion of the bond return would be high, the potential loss in par value could easily erode the extra return. Perhaps the most unusual bond (and certainly the most ghoulish) is the “death bond.” Companies such as Stone Street Financial purchase life insurance policies from individuals who are expected to die within the next 10 years.
Views: 1373 Farhat's Accounting Lectures
Premium Course: https://www.teachexcel.com/premium-courses/68/idiot-proof-forms-in-excel?src=youtube Excel Forum: https://www.teachexcel.com/talk/microsoft-office?src=yt Excel Tutorials: https://www.teachexcel.com/src=yt This tutorial will show you how to calculate bond pricing and valuation in excel. This teaches you how to do so through using the NPER() PMT() FV() RATE() and PV() functions and formulas in excel. To follow along with this tutorial and download the spreadsheet used and or to get free excel macros, keyboard shortcuts, and forums, go to: http://www.TeachMsOffice.com
Views: 178569 TeachExcel
Tax free bonds are issued by government enterprises which offer fixed payment of interest in return for borrowed money for a specified period. You don't have to pay any tax on the interest earned from these bonds. They typically have long term maturity of 10, 15 or 20 years. Tax free bonds can be transacted in stock exchanges. These bonds give return of around 11%-12% if bought at the time of it's issue. While, it gives a return of 9-9.5% if bought at stock exchange. Tax-free bonds are suitable for investors looking for a steady source of income annually and can afford to lock-in their capital for the long term. Tax free bonds are a risk free investment option to double money. Watch our video to know more about it.
Views: 3415 B Wealthy
This fixed income Investment Bond is Asset Backed with the bond holders have security over mining assets valued at AU$286m. The Security is governed by and enforceable under English Law and assets are pledged to the trustee. http://investglobalmanagement.com/fixed-income-12-pa-5-years
Views: 506 Invest Global
Scientific Wealth Manager https://en.samt.ag/user-registration What are Bonds? A bond is the most common type of fixed-income security, it is a debt instrument that makes a series of fixed interest payments regularly, and pays the principal amount on the maturity date. Entities such as governments and corporations issue bonds to finance various projects. At its core a bond is just a loan that investors make to the bond’s issuers. When the bond is first issued its value is basically the amount being loaned, called the face value of the bond. In exchange for this loan the investor gets regular interest, known as the coupon. Bonds are issued for a specified period. This duration can be a year, three years, five years, 30 years and above. When the bond matures, the issuer repays the loan to the investor. Then there are quasi-government entities. These entities are not under direct obligation of a central bank or the national governments. For instance, the Federal National Mortgage Association or Fannie Mae. Supranational entities operate globally. The European investment Bank, The International Monetary Fund and the World Bank are some examples. Then there are bonds that do not have a maturity date called, perpetual bonds. They pay interest, but don't carry any promises of repaying the principal amount. The par value of a bond is a principal amount that is repaid to the investor at maturity. It is also known by other terms such as face value and redemption value. Par value is quoted as a percentage of par. For instance, a bond with a par value of $1000, quoted at 98, will be selling for $980. Some bonds pay annual coupons while there are those that pay semiannual, quarterly or monthly interest payments. A $1000 par value semiannual pay bond with 5% coupon will pay 2.5% of $1000 or $25 every six months. Please note that there are bonds whose coupon rate varies throughout their tenure. If a bond has a fixed coupon rate it's called plain-vanilla bond or conventional bond. There are special types of bonds that do not pay any coupon payment before maturity, called pure discount or zero-coupon bonds. Such bonds are sold at a discount to par value, hence the term pure discount. The interest accumulates till maturity, then it is repaid to the investor along with the par value. For instance, a 10 year $1000 zero-coupon bond with 7% yield would initially sell at around $500, and then it will pay $1000 to the bondholder at maturity. As there are different currencies, so are the bonds denominated in those currencies. A dual currency bond makes coupon payments in one currency and repays the principal in another. While a currency option bond gives the investor or the bondholder a choice to choose a pair of currencies in which they would like to receive payments. Bonds are subject to different regulations and legal requirements, which depend on factors such as their place of issue and the place where they are traded at. A bond issued by a firm domiciled in a country, and also traded in that country's currency is called a domestic bond. If a firm, incorporated in a foreign country, issues a bond that trades on the national bond market of another country in that country's currency is called a foreign bond. For instance, if a foreign firm issues bonds denominated in yuan (yoo-an) that trade in China, are foreign bonds, and are known as panda bonds. Similarly, if a firm is incorporated outside of the United States and issues a bond denominated in US dollar and trades in the United States it’s also a foreign bond, known as a Yankee bond. Euro bonds are issued outside the jurisdiction of any one country, and denominated in a currency different from the currency of the countries in which these are sold. Initially, Eurobonds were created to avoid US regulations. These bonds should not be confused with bonds denominated in euro currency or domiciled in Europe, although they can be both. An example of a Eurobond would be a bond issued by a Chinese firm denominated in the Japanese yen and traded in markets outside of Japan. Global bonds are sold inside as well as outside the country in whose currency they are denominated. For instance, a dollar global bond will trade in New York which will be its domestic bond market as well as in Tokyo which will be its Eurobond market. Euro bonds are known by the currency they are denominated in for instance a Eurobond denominated in US dollar is called a Eurodollar bond, similarly a euro yen bond is denominated in yen. Most euro bonds are issued in bearer form, which means that their ownership is evidenced simply by the possession of the bonds. In registered bonds however, the ownership is recorded. Hence, bearer bonds are more popular among folks looking to avoid taxes.
Views: 783 SAMT AG Schweizer Vermögensverwaltung
Why buy a bond that pays no interest? This video helps you understand what a zero coupon bond is and how it can be beneficial. It details when you should expect to receive a return after buying a zero coupon bond and some of its unique features. Questions or Comments? Have a question or topic you’d like to learn more about? Let us know: Twitter: @ZionsDirectTV Facebook: www.facebook.com/zionsdirect Or leave a comment on one of our videos. Open an Account: Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com Bid in our Auctions: Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com
Views: 37179 Zions TV
Just a quick take on investing in bonds. It is a lot different that investing in stocks because you have inflation working against you. What do I do? Full-time independent stock market analyst and researcher: https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform Check the comparative stock list table on my Stock market research platform under curriculum preview! I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More about me and some written reports at the Sven Carlin blog: https://svencarlin.com Stock market for modern value investors Facebook Group: https://www.facebook.com/groups/modernvalueinvesting/
Views: 3455 Invest with Sven Carlin, Ph.D.
SUMMARY: In the above video I reveal a powerful strategy that is practically available to all, but is known and fully understood by a very few. If one takes the time to learn and implement this method of eliminating debt, one may find themselves pleasantly surprised of how quickly their home mortgage, auto loans, student loans or business loans can be completely paid off. This strategy is known as Velocity Banking and in the video I will demonstrate how Velocity Banking can be used to pay off a 30 year home mortgage in just 5-7 years without sending double payments to the bank or changing one’s current level of income. RECAP OF THE VIDEO: I start off by creating a scenario of a financial situation by taking an average household net income in the United States combined with some of the basic monthly expenses: home mortgage, minimum payment on a credit card, car payment and living expenses which include groceries, utilities, gym membership… Once all expenses are identified and subtracted from the net monthly income it is important to understand the impact of cash flow, the difference between a loan and a line of credit, how the interest of a loan and a line of credit is calculated, and how monthly payments on a mortgage are dispersed between interest and principal paydown. To help demonstrate these differences I create tables and an amortization graph. As I go on to unveil the main differences I also identify the biggest reason why nowadays most homeowners are unable to payoff their home mortgages due to the unstrategic use of home refinancing. By this point having had identified the difference between a loan and a line of credit I can reveal the benefits of utilizing a line of credit to pay off a home mortgage in 5-7 years. This is where I get into the Velocity Banking strategy which incorporates an unaccustomed method of moving one’s entire monthly paycheck into a line of credit instead of the accustomed checkings and savings accounts. By adopting this method one can leverage a line of credit to free up cash flow, gain cash back rewards, build credit history and improve credit score, but the greatest leverage created is the thousands if not hundreds of thousands of dollars in interest savings. KARL'S MORTGAGE CALCULATOR APP: https://itunes.apple.com/us/app/karls-mortgage-calculator/id1025852681?mt=8 Android version: https://play.google.com/store/apps/details?id=com.drcalculator.android.mortgage ★☆★ SUBSCRIBE TO MY YOUTUBE CHANNEL FOR VIDEOS ABOUT REAL ESTATE AND BUSINESS ★☆★ ► Velocity Banking & Real Estate Investing Course - Please email me at [email protected] for more information. ★☆★ CONNECT WITH ME ON SOCIAL MEDIA ★☆★ FACEBOOK: https://www.facebook.com/Laura-Pitko-1464576883611081/ INSTAGRAM: https://www.instagram.com/laura_pitko24/ DISCLAIMER: I (Laura Pitkute) am not a financial advisor, real estate broker, a licensed mortgage broker, not a certified financial planner, not a licensed attorney, and not a certified public accountant, therefore please consult with a competent professional prior to engaging in any financial strategies. Not everyone will experience 100% success rate by using this strategy as it requires a commitment to keep applying this strategy over time until the desired result is achieved. I (Laura Pitkute) do not promise or guarantee any specific outcomes and/or results from the use of this strategy.
Views: 2681523 Laura Pitko
Fixed Income High Yield Money Market, CD and Short Term Bonds. Many investors and non investors want to park their money and get the best interest rate and yield. Subscribe to our channel https://youtu.be/Ye2ijkO6LQ4 😃 👍 Thank you for a Thumbs Up Who are we? The Wisdom Investor is all about providing valuable information and education to help you accumulate a nest egg for retirement. People of all ages can benefit from our videos. We want to help you build your financial wealth. You can build your financial wealth by saving, investing and managing your expenses. In addition we cover topics like Social Security, debt, housing, expenses, withdrawing money, health care, tax strategies, exercise and where to live. Website http://www.wisdominvestor.com Planning for Retirement http://www.wisdominvestor.com/weekly.htm Investing ETF Funds http://www.wisdominvestor.com/market.htm Contact [email protected] These People Will Not Get Social Security https://youtu.be/_7V6Xzqum0o 50 Years old and No Money for Retirement https://youtu.be/TL2AOm-qAmM How Much Income with 400,000 Savings? https://youtu.be/bezM82g_ltk $300,000 by 65 How Much Income Will I Have in Retirement? https://youtu.be/LH0ekQDn4o8 $400,000 At 55 Years Old and Retire Early https://youtu.be/jdttmBH9mLA Should I Take Social Security at 62? https://youtu.be/AYiMziBnBis Financial Independence in 12 Years https://youtu.be/C1__3PTRAGA Build a Stream of Income https://youtu.be/Vi_kgQ9NvfQ How to Have More Money https://youtu.be/Vi_kgQ9NvfQ How Much Social Security If I Make $50,000 https://youtu.be/vDtInklwmfM How Much Money to Save For Retirement https://youtu.be/ZOgkLUyZ5kI Will My Income Last During Retirement? https://youtu.be/tIFA_y20Kko Dividend Investing with Stocks and ETF's https://youtu.be/JVOD7zli8uI Expenses During Retirement https://youtu.be/UuYPrW2t39I How to Get Out of Credit Card Debt https://youtu.be/OnL1-lVmMZQ Should I pay off my mortgage? https://youtu.be/vzmPKj2gE_I When to Buy Stocks https://youtu.be/yg09pAwcadU Technical Indicators for Buy Signal - https://youtu.be/9JVokot0-SA
Views: 539 Wisdom Investor
A brief demonstration on calculating the price of a bond and its YTM on a financial calculator
Views: 200862 Friendly Finance with Chandra S. Bhatnagar
An introduction to bond calculations. This is basically the combination of a stream of fixed payments followed by a lump sum payment. A basic knowledge of the time value of money is required. For more questions, problem sets, and additional content please see: www.Harpett.com. Video by Chase DeHan, Assistant Professor of Finance at the University of South Carolina Upstate.
Views: 459 Harpett
Most borrowers borrow through banks. But established and reputable institutions can also borrow from a different intermediary: the bond market. That’s the topic of this video. We’ll discuss what a bond is, what it does, how it’s rated, and what those ratings ultimately mean. First, though: what’s a bond? It’s essentially an IOU. A bond details who owes what, and when debt repayment will be made. Unlike stocks, bond ownership doesn’t mean owning part of a firm. It simply means being owed a specific sum, which will be paid back at a promised time. Some bonds also entitle holders to “coupon payments,” which are regular installments paid out on a schedule. Now—what does a bond do? Like stocks, bonds help raise money. Companies and governments issue bonds to finance new ventures. The ROI from these ventures, can then be used to repay bond holders. Speaking of repayments, borrowing through the bond market may mean better terms than borrowing from banks. This is especially the case for highly-rated bonds. But what determines a bond’s rating? Bond ratings are issued by agencies like Standard and Poor’s. A rating reflects the default risk of the institution issuing a bond. “Default risk” is the risk that a bond issuer may be unable to make payments when they come due. The higher the issuer’s default risk, the lower the rating of a bond. A lower rating means lenders will demand higher interest before providing money. For lenders, higher ratings mean a safer investment. And for borrowers (the bond issuers), a higher rating means paying a lower interest on debt. That said, there are other nuances to the bond market—things like the “crowding out” effect, as well as the effect of collateral on a bond’s interest rate. These are things we’ll leave you to discover in the video. Happy learning! Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/29Q2f7d Next video: http://bit.ly/29WhXgC Office Hours video: http://bit.ly/29R04Ba Help us caption & translate this video! http://amara.org/v/QZ06/
Views: 59373 Marginal Revolution University
Investors capital protection has been put at the forefront when designing this bond to insure against the risk of capital loss. With this in mind an insurance policy guarantees at all times investors’ capital from risks of loss. This insurance policy has been specifically tailored to the bond providers exacting trading model. For the first time, access is offered at a low entry level of £5,000 to a low risk fully capital protected trading platform, which previously was only available to large financial institutions with tens of millions of capital. This is done through the bond issuers long-standing relationships with fund managers, traders and professionals at the highest level within the financial sector, which are not available to retail investors. Profits are generated in a low risk manner by buying and selling securities through a well-known method called arbitrage. Arbitrage is the simultaneous purchase and sale of an asset, in order to profit from the price differences between a seller and a buyer of financial instruments. These transactions will only take place if they have been pre-sold at a profit prior to purchase, with a contract binding the purchaser to complete, removing any risk for the investor. This fixed income investment market accounts for trillions of pounds every year through the world’s financial institutions, which until now was previously a closed market for private individuals. All subscriptions into the bond will be received by a regulated payments services provider (Security Trustee) in the UK. They are then placed directly by this FCA regulated company into the chosen trades with a first charge over the contract. The security trustee will then hold profits in an independent designated deposit account account which is known as a sinking fund. This means that all bond subscriptions and profits are ring-fenced and secure. Should you require access to your money quickly this can be done in writing with funds received in 30 days. This is subject to receiving 95% of the bonds nominal value. This can now be accessed through an exclusive bond only available through Protected Capital. EXCLUSIVELY AVAILABLE ONLY FROM PROTECTED CAPITAL
Views: 4395 Short-term Investments
Stop missing out on your best opportunity for cash flow and safe returns. Learn the secret to investing in bonds and get started now with Step-by-Step Bond Investing https://amzn.to/2MqKE5d Bond investments are way underrated by investors with less than 2% of investors holding any fixed-income at all in their portfolio. That’s despite the fact that bonds provide rock-solid cash flow and safe returns compared to stocks. In fact, bonds have actually beaten the return on stocks during the last decade. Now I love investing in stocks just as much as the next person and I’m not saying you should ditch equities but bonds is going to be the secret asset you add to your portfolio that helps reach your financial goals. I’m going to walk you through three steps to investing in bonds to protect your money while still producing that return and I’ll show you how to find bonds in which to invest on any online site. I’m then going to share my favorite bond investing strategy, something that will make all this super easy so make sure you stick around to the end of the video. From explaining the basics of bond investing to giving you tips for investing in bonds, this video will give you all the tools to diversifying your portfolio and creating consistent returns even in a bear market. - Why bond investing could be the smartest investment decision you make - Stocks vs Bonds: how bond returns actually beat stocks - What happens to bonds when interest rates rise - 3 Steps to investing in bonds - How to pick bond investments and a fixed-income strategy for consistent cash flow SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://peerfinance101.com/FreeMoneyVideos Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps. #investing #stocks #investment
Views: 4220 Let's Talk Money! with Joseph Hogue, CFA
A bond is a debt instrument in which an investor loans money to the issuer for a defined period of time and receives coupons paid by the issuer at fixed interest rate. The bond principal will be returned at maturity date. Bonds are usually issued by companies, municipalities, states/provinces and countries to finance a variety of projects and activities. Fixed rate bonds generally pay higher coupons than interest rates. An investor who wants to earn a guaranteed interest rate for a specified term can choose fixed rate bonds. The benefit of a fixed rate bond is that investors know for certain how much interest rate they will earn and for how long. Due to the fixed coupon, the market value of a fixed rate bond is susceptible to fluctuation in interest rate and therefore has a significant interest rate risk. There are two types of bond valuation models in the market: yield-to-maturity model and credit spread model. This presentation gives an overview of fixed rate bonds and also elaborates two valuation models. You can more information at http://www.finpricing.com/lib/FiBond.html
Views: 12 David Lee
The Canada 5 year bond, which is closely correlated with the 5 year fixed borrowing rate, inched closer to a 7 year high earlier this week. As a result, TD Bank increased borrowing costs on their 5-year fixed overnight lending rate a whopping 45 basis points (bps) to 5.59%, the largest increase in eight years. RBC later followed suit. Per Rate Spy prior to RBC following suit: “If at least two other Big 6 banks follow TD’s lead (and they may), the mortgage qualifying rate will jump enough to shave off about 3% from a typical borrower’s buying power. That makes the government’s mortgage stress test all the more stressful and, of course, could add downward pressure to home prices, and trap more people with their bank at renewal, to the extent they can’t qualify elsewhere.” Bond yields are testing new highs and will be important to watch moving forward. Much of this is being fuelled by the United States which is experiencing higher inflation, and engaging in Quantitative tightening. I'll be speaking about Vancouver Real Estate with some folks at CIBC on May 2nd from 6-8pm. If you want to come out shoot me an email [email protected] http://vancitycondoguide.com/mortgage-arrears-rate-bc/
Views: 4032 Steve Saretsky
More help: https://www.teachexcel.com Excel Forum: https://www.teachexcel.com/talk/microsoft-office?src=yt How to find the interest and principal payments on a fixed rate loan in excel. This tutorial will walk you through using the PPMT() and IPMT() functions in excel in order to find out how much of a monthly payment on a loan actually goes to pay off the loan amount and how much is just an interest payment. More free excel stuff such as macros, tutorials, articles, etc. go to: TeachExcel.com
Views: 455749 TeachExcel
Let us learn how to invest in Bonds and Debentures in hindi. You can invest in Corporate Bonds or Debentures, Government Bonds or Tax Saving Bonds of Public Sector Units (PSU). There are 2 main ways - (1) Through Debt Mutual Funds and (2) Directly. In this video, we will understand all avenues through which you can invest in Bonds and Debentures and what kind of returns you can expect. You can choose to invest in corporate debentures, government securities or tax saving bonds like REC Bonds, NHAI Bonds and PFC Bonds. Related Videos: Bonds vs Debentures: https://youtu.be/BdMg5RmMj_0 Shares vs Bonds/Debentures: https://youtu.be/afSACc6c2c0 Types of Bonds and Debentures: https://youtu.be/5YN_Uo7stms हिंदी में जानें कि bonds और debentures में invest कैसे करें। आप Public Sector Units (PSU) के Corporate Bonds or Debentures, Government Bonds or Tax Saving Bonds में Invest कर सकते हैं। 2 main तरीके हैं - (1) Debt Mutual Funds के माध्यम से और (2) Directly। इस वीडियो में, हम उन सभी avenues को समझेंगे जिनके माध्यम से आप Bonds और Debentures में invest कर सकते हैं और आप किस तरह के returns की उम्मीद कर सकते हैं। Share this video: https://youtu.be/hC9OsIzAoEk Subscribe To Our Channel and Get More Finance Tips: https://www.youtube.com/channel/UCsNxHPbaCWL1tKw2hxGQD6g To access more learning resources on finance, check out www.assetyogi.com In this video, we have explained: How to invest in bonds and debentures? How to invest in debt mutual funds to get exposure to bonds and debentures indirectly? How to buy government bonds? What kind of returns you can expect in different types of bonds? What are the avenues through which we can invest in debentures? What do tax saving bonds mean? What are the main methods to invest in bonds and debentures? What is the indirect way of investing? How to invest in tax-saving bonds? What are the advantages and disadvantage in an indirect way of investing i.e. through debt mutual funds and hybrid mutual funds? What is the direct way of investing? Are government bonds traded on the stock market? Why the interest rates on tax-saving bonds is less? How to invest in corporate bonds? What does buyback facility mean? Make sure to like and share this video. Other Great Resources AssetYogi – http://assetyogi.com/ Follow Us: Google Plus – https://plus.google.com/+assetyogi-ay Twitter - http://twitter.com/assetyogi Facebook – https://www.facebook.com/assetyogi Linkedin - http://www.linkedin.com/company/asset-yogi Pinterest - http://pinterest.com/assetyogi/ Instagram - http://instagram.com/assetyogi Hope you liked this video in Hindi on “How to invest in Bonds and Debentures"
Views: 6900 Asset Yogi
A bond is issued by a government or company as a way of borrowing money. Investors buy the bonds, and receive an interest payment on the fixed dates, at the stated interest rate, or ‘coupon.’ The bond has a known maturity date, at which the investors are entitled to be repaid the money lent via the bond. It is possible that at maturity date the company or government cannot repay the bond or is unable to pay the coupons: .this is the main risk associated with owning a bond. Bonds can usually be bought and sold like shares, but if you sell or buy a bond before maturity it may have a different value than the initial amount loaned, which can give rise to a capital gain or loss.
Views: 6 WealthKnowHow
Paying off an old collection or charge off will increase your credit score. This is a huge MYTH! Effects of Paying When you pay an older collection account or charge-off account, your credit score most likely will suffer. Think twice before paying off an old collection or charge off. By paying your debt, it renews the date of last activity. The collection company or creditors can now report the account for another 7 years. Everyone knows debt collections are bad for your credit score. Any past due accounts including debt collections have negative effects. These accounts report on your credit report for up to7 years. As accounts age, they have less and less impact on your credit score. Many consumers believe by paying off collections or charge-off accounts, that it will raise their credit scores. It certainly seems logical; however it is far from the truth. If you are concerned about your credit score, paying off debts prior to obtaining any other type of loan or mortgage can greatly hurt your credit score. Ultimately, if it is an older account when paid off (or payments are made on the account), by doing so can be devastating to ones credit score. The recent activity of any derogatory item has a big impact on how it effects your overall credit score. Is the Debt Still Valid? After a certain period of inactivity on an account, a debt becomes time-barred and debt collectors can no longer sue you for it. This period is known as "the statute of limitations on debt" and varies by state. If the statute of limitations has passed, it is illegal for a debt collector or creditor to sue you. You need to be careful in communicating with a debt collector because the debt statute of limitations can easily be restarted by acknowledging that you owe the debt, making a payment, entering a payment plan, making an agreement to pay or making a charge on the account. After 7 Years Collection and charge-off accounts should only remain on your credit report for 7 years. It is important to check your credit reports as the credit bureaus often continue reporting these derogatory accounts over the 7 year limit. If you have any questions regarding collection accounts on your credit reports, call our office today for your complimentary credit consultation. We look forward to hearing from you. 480-502-5554 LEGAL DISCLAIMER: The advice provided is for informational purposes only. It is not to be construed as Legal Counsel or Legal Advice.
Views: 417321 911creditpros
In this video, I have explained What are Bonds Difference Between Bonds and Debentures Types of Bonds ---------------------------------------------- Share, Support, Subscribe!!! Facebook:https://www.facebook.com/BasicGyaan.F Twitter: https://twitter.com/BasicGyaan Instagram Myself: https://www.instagram.com/SunilSolves/... Google Plus: https://plus.google.com/1010703809019... Microphone i use : http://amzn.to/2xBYjBO About : BASIC GYAAN is a YouTube Channel, where you will find Videos on curious interesting topics related to Finance, Economics and Trending topics in Hindi, New Video is Posted Every week :)
Views: 121456 Basic Gyaan
Learn how you can create fixed income and a more diversified portfolio with bonds.
Views: 45067 Investopedia
What is a convertible bond! A convertible bond is a debt instrument issued by a company in order to get financing. The company will pay a periodic interest rate on the borrowed amount and, like any other bond, the bond has a maturity date. But, unlike other bonds, the holder of the bond can choose between getting his money back or, converting his bonds for a pre-set number of shares in the company or common stocks. The decision depends on the value of the shares in that moment. If the market value of the shares is higher than the bond principal, it is better to convert. If the market value of the shares is lower, it is better to require the debt to be repaid. This video will discuss: What is a convertible bond - definition Why do companies issue convertible bonds - convertible bond advantages Why do investors buy convertible bonds Convertible bonds accounting What do you need to know as an investor in stocks that issue convertible bonds 3 convertible bond examples (Tesla convertible bond, Ctrip, 51Jobs) How do convertible bonds affect earnings (a bit of accounting) Convertible bonds conclusion What do I do? Full-time independent stock market analyst and researcher! STOCK MARKET RESEARCH PLATFORM (analysis, stocks to buy, model portfolio): https://sven-carlin-research-platform.teachable.com/p/stock-market-research-platform Check the comparative table on my Stock market research platform under curriculum preview! I am also a book author: Modern Value Investing book: https://amzn.to/2lvfH3t More at the Sven Carlin blog: https://svencarlin.com Stock market for modern value investors Facebook Group: https://www.facebook.com/groups/modernvalueinvesting/
Views: 4260 Invest with Sven Carlin, Ph.D.
FULL HD VERSION: https://www.youtube.com/watch?v=YM_I2MTtqFA Sovereign Gold Bond Scheme 2018-19 Government of India has vide its Notification F.No. 4(22)-W&M/2018 dated October 08, 2018 announced the Sovereign Gold Bond Scheme 2018-19 (“the Bonds”). Under the scheme there will be a distinct series (starting from Series II) for every tranche which will be indicated on the Bond issued to the investor. The Government of India may, with prior notice, close the Scheme before the specified period. The terms and conditions of the issuance of the Bonds shall be as follows: 1. Eligibility for Investment: The Bonds under this Scheme may be held by a person resident in India, being an individual, in his capacity as such individual, or on behalf of minor child, or jointly with any other individual. The bond may also be held by a Trust, HUFs, Charitable Institution and University. “Person resident in India” is defined under section 2(v) read with section 2(u) of the Foreign Exchange Management Act, 1999 2. Form of Security The Bonds shall be issued in the form of Government of India Stock in accordance with section 3 of the Government Securities Act, 2006. The investors will be issued a Holding Certificate (Form C). The Bonds shall be eligible for conversion into de-mat form. 3. Date of Issue For the applications received during a given week, the bond shall be issued on the second business day of next week. 4. Denomination The Bonds shall be denominated in units of one gram of gold and multiples thereof. Minimum investment in the Bonds shall be one gram with a maximum limit of subscription of 4 kg for individuals, 4 kg for Hindu Undivided Family (HUF) and 20 kg for trusts and similar entities notified by the government from time to time per fiscal year (April – March), provided that in case of joint holding, the above limits shall be applicable to the first applicant only; annual ceiling will include bonds subscribed under different tranches during initial issuance by Government and those purchased from the secondary market; and the ceiling on investment will not include the holdings as collateral by banks and other Financial Institutions. 5. Issue Price The nominal value of the Bonds shall be fixed in Indian Rupees fixed on the basis of simple average of closing price of gold of 999 purity published by the India Bullion and Jewelers Association Limited for the last 3 working days of the week preceding the subscription period. The issue price of the Gold Bonds will be ₹ 50 per gram less than the nominal value to those investors applying online and the payment against the application is made through digital mode. 6. Period of subscription.- The Subscription of the Gold Bonds under this Scheme shall be open as specified in Section 7 below. Provided that the Central Government may, with prior notice, close the Scheme at any time before the period specified above 7. Calendar of Issuance.- S.No.TrancheDate of SubscriptionDate of Issuance12018-19 Series IIOctober 15-19, 2018October 23, 201822018-19 Series IIINovember 05-09, 2018November 13, 201832018-19 Series IVDecember 24-28, 2018January 01, 201942018-19 Series VJanuary 14–18, 2019January 22, 201952018-19 Series VIFebruary 04-08, 2019February 12, 2019 8. Interest The Bonds shall bear interest from the date of issue at the rate of 2.50 percent (fixed rate) per annum on the nominal value. Interest shall be paid in half-yearly rests and the last interest shall be payable on maturity along with the principal. 9. Receiving Offices Scheduled Commercial Banks (excluding RRBs), designated Post Offices (as may be notified), Stock Holding Corporation of India Ltd (SHCIL) and recognized stock exchanges viz., National Stock Exchange of India Limited and Bombay Stock Exchange Ltd. are authorized to receive applications for the Bonds either directly or through agents. 10. Payment Options Payment shall be accepted in Indian Rupees through cash up to a maximum of ₹ 20,000/- or Demand Drafts or Cheque or Electronic banking. Where payment is made through cheque or demand draft, the same shall be drawn in favour of receiving office. 11. Redemption i) The Bonds shall be repayable on the expiration of eight years from the date of issue of the Bonds. Pre-mature redemption of the Bond is permitted from fifth year of the date of issue on the interest payment dates. ii) The redemption price shall be fixed in Indian Rupees and the redemption price shall be based on simple average of closing price of gold of 999 purity of the previous 3 working days, published by the India Bullion and Jewelers Association Limited. 12. Repayment RBI/depository shall inform the investor of the date of maturity of the Bond one month before its maturity. 13. Loan against Bonds The Bonds may be used as collateral for loans.
Views: 188 Facts Express
We prepared series of videos for CFA exam preparation. _________________________________________________________ Bond Indenture: Also called Trust deed – legal contract between issuer and bond holder, held by trustee It has covenants. Covenants – Provisions of the bond indenture/ Affirmative covenants: Actions the issuer must perform (ex. make payments on time, insure assets - collateral, comply with laws) Negative covenants: Restrictions on issuer actions that would disadvantage bondholders – to protect bondholder (ex. issuer cannot pay dividends until bond payments made) Domestic and Foreign Bonds - Domestic bonds – ex. $US bond of Microsoft issued in US - Foreign bonds – ex. Heineken (Dutch company) issuing $US bonds in US must be registered with SEC - National bond market includes both types of bonds traded in this country Eurobonds - Sold by an international syndicate, issued simultaneously to investors in many countries - Issued outside the jurisdiction of any single country, often bearer bonds rather than registered bonds (for ex. in SEC) - Called Euro – because first appeared in Europe (London) - Issued in a currency other than the issuers`s domestic currency (ex. Euroyen – US company issuing Yen denominated bond) Advantages of Eurobond: - Avoid regulation, less tax constraints, issue US bonds without registering with the SEC (cannot traded in US) - Reach a large pool of investors globally, primarily in Eurozone, Asia-Pacific and the United States Global bonds: Eurobonds that also trade in a domestic bond market (ex. World Bank bonds) ________________________________________________________ tags: CFA, cfa exam, exam, Chartered Financial Analyst, financial, finance, fixed income, bond, securitized bonds, covered bond, covered, securitization
Views: 3 CFA GURU
Bonds play an important role in any investment portfolio, helping to reduce volatility and spread risks. A type of fixed interest security, bonds operate like a loan. You lend money to a government, company or other organisation in exchange for regular interest payments. In addition to this reliable stream of income, your original investment is paid back in full at the end of the bond’s term, which can typically be anywhere from one to 30 years. You can buy bonds through a public offer when they are first issued, sometimes on the stock exchange or via a managed fund or ETF. You can hold individual bonds until they mature or sell them in the bond market. Bonds are often described as defensive assets. While their capital value fluctuates along with changing economic conditions and interest rates, they are generally less volatile than growth assets like shares and property. Even though they have less potential for capital growth than growth assets over the longer term, they help diversify your investment risks. Not all bonds are the same. They range from relatively safe government bonds to riskier corporate bonds. Both types can default on their obligations. So it’s vital to check their credit quality carefully. Whatever mix of investment styles suits your needs, when you invest with Vanguard you have more than 40 years of investing experience behind you. So you can feel confident that Vanguard investments are built on a rigorous investment philosophy that stands the test of time. To download Vanguard’s Bond Plain Talk guide visit our website. https://www.vanguardinvestments.com.au/adviser/adv/client-material/plaintalk.jsp Vanguard website https://www.vanguardinvestments.com.au/adviser/adv/home-page.html Follow us on LinkedIn https://www.linkedin.com/company/vanguard-australia/ Follow us on Twitter https://twitter.com/vanguard_au Subscribe to our YouTube channel!
Views: 768 Vanguard Australia
Free Application Download: http://www.arbitrageportfolio.com/Fixed-Income-Arbitrage-Calculator.xlsx Full Article: http://www.arbitrageportfolio.com/bonds-fixed-income-arbitrage/ Fixed Income Arbitrage In the fixed income arbitrage strategy you simply execute a simultaneous trade where you buy and sell bonds with similar debt structures intending only to profit from the difference between yields. How to Arbitrage Bonds Imagine that the margin rates for your online broker are 1.5% and that you have $10,000 of buying power in your account. The only thing left to do is to find a high quality (AAA grade) government or corporate bond to buy with a higher yield than 1.5%. Your straight-out profit would be the spread between yields presented by following equation: Fixed Income Arbitrage Formula: Total Return = Bonds Coupons Payments (Interest on Long bond) -- Transactions Costs (Margin & Leverage Cost) +/- Capital Gain/Loss from Bond Bond - Fixed Income Arbitrage Calculator
Views: 1271 Irving Rivera
In this session, we examine the risks of investing in bonds. Even if the payments on the bond are guaranteed (there is no default risk), you face interest rate risk after you buy the bond and we look at simple measures of interest rate risk exposure. We also look at the additional risk that comes from default, how best to measure that default risk and how much to demand as compensation for exposure to that risk.
Views: 13149 Aswath Damodaran
A bond is called a fixed-income investment because the interest rate, the coupon payment dates and the date when your principal is returned are all fixed at the outset. Patrick O'Toole, Vice-President, Global Fixed Income, CIBC Asset Management discusses.
Views: 130 CIBC
For More Visit our website - https://sfmguru.in/ Buy Rewamp & revise the entire SFM in 1 day: https://sfmguru.in/revamp-ca-final-sfm-revision-book/ Subscribe to Channel for more videos: https://www.youtube.com/channel/UCiPzkqrzDsoq-pLrloT7Fcw/featured Sensitivity of a Bond with respect to changes in Desired Yield Rate Interest rate sensitivity is a measure of how much the price of a fixed-income asset will fluctuate as a result of changes in the interest rate environment. Securities that are more sensitive have greater price fluctuations than those with less sensitivity. This type of sensitivity must be taken into account when selecting a bond or other fixed-income instrument the investor may sell in the secondary market. Fixed-income securities and interest rates are inversely correlated. Therefore, as interest rates rise, prices of fixed-income securities tend to fall. One way to determine how interest rates affect a fixed-income security's portfolio is to determine the duration. The higher a bond or bond fund's duration, the more sensitive the bond or bond fund to changes in interest rates. The duration of fixed-income securities gives investors an idea of the sensitivity to potential interest rate changes. Duration is a good measure of interest rate sensitivity because the calculation includes multiple bond characteristics, such as coupon payments and maturity. #Bonds , #Finance , #CAFinal , #FinancialLearning , #CAFinalSFM , #StrategicFinancialManagement , #SFM ,
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Download Ethics Question Bank: http://www.edupristine.com/ca/free-10-day-course/cfa-fixed-income/ The difference between a zero-coupon bond and a regular bond is that a zero-coupon bond does not pay coupons, or interest payments, to the bondholder while a typical bond does make these interest payments. The holder of a zero-coupon bond only receives the face value of the bond at maturity. The holder of a coupon paying bond receives the face value of the bond at maturity but is also paid coupons over the life of the bond. More about CFA on: http://www.edupristine.com/ca/courses/cfa/ About EduPristine: Trusted by Fortune 500 Companies and 10,000 Students from 40+ countries across the globe, EduPristine is one of the leading Training provider for Finance Certifications like CFA, PRM, FRM, Financial Modeling etc. EduPristine strives to be the trainer of choice for anybody looking for Finance Training Program across the world. Subscribe to our YouTube Channel: http://www.youtube.com/subscription_center?add_user=edupristine Visit our webpage: http://www.edupristine.com/ca
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In his latest video tutorial, MoneyWeek’s former deputy editor Tim Bennett explains the basics of bonds – what they are and how they work. Visit http://moneyweek.com/youtube for extra videos not found on YouTube. MoneyWeek videos are designed to help you become a better investor, and to give you a better understanding of the markets. They’re aimed at both beginners and more experienced investors. In all our videos we explain things in an easy-to-understand way. Some videos are about important ideas and concepts. Others are about investment stories and themes in the news. The emphasis is on clarity and brevity. We don’t want to waste your time with a 20-minute video that could easily be so much shorter. Related links… -What are derivatives? https://www.youtube.com/watch?v=Wjlw7ZpZVK4 - What are options and covered warrants? https://www.youtube.com/watch?v=3196NpHDyec - What are futures? https://www.youtube.com/watch?v=nwR5b6E0Xo4 - What is a swap? https://www.youtube.com/watch?v=uVq384nqWqg - Why you should avoid structured products https://www.youtube.com/watch?v=Umx5ShOz2oU
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