A bond is a debt security where the issuer owes the holder a debt and is obliged to repay the principal and interest at maturity. Bonds have features like nominal value, coupon rate, maturity date, and call/put options. There are various types of bonds like fixed rate, floating rate, zero coupon bonds, and municipal bonds. Bond portfolio strategies include passive buy and hold strategies, active strategies like sector substitution, and semi-active strategies like immunization and duration matching to reduce interest rate risk. Bonds are evaluated based on the issuer's financial strength and past earnings, while valuation considers the present value of future cash flows and yield to maturity is the single discount rate that equals the current price.
Descriptions and explanation of all types of derivative instruments to trade with on the capital market.
http://www.koffeefinancial.com/Static/Learn.aspx
Descriptions and explanation of all types of derivative instruments to trade with on the capital market.
http://www.koffeefinancial.com/Static/Learn.aspx
This ppt is prepared to provide detailed information regarding Forwards and Futures contracts of Derivatives the topics covered under this are Meaning of Forwards contracts, Underlying Assets of Forwards contracts, FEATURES OF FORWARD CONTRACTS, Tailored made, Why Forwards contracts, FUTURES CONTRACT, What is A Futures Contract, Characteristics of Futures contracts, Mechanism of Trading in Futures Market, Margin requirement, Marking-to-market (M2M), SETTLING A FUTURE POSITION, OFFSETTING, CASH DELIVERY, by Sundar, Assistant Professor of commerce.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
This ppt is prepared to provide detailed information regarding Forwards and Futures contracts of Derivatives the topics covered under this are Meaning of Forwards contracts, Underlying Assets of Forwards contracts, FEATURES OF FORWARD CONTRACTS, Tailored made, Why Forwards contracts, FUTURES CONTRACT, What is A Futures Contract, Characteristics of Futures contracts, Mechanism of Trading in Futures Market, Margin requirement, Marking-to-market (M2M), SETTLING A FUTURE POSITION, OFFSETTING, CASH DELIVERY, by Sundar, Assistant Professor of commerce.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
ASSIGNMENT 4
g
[Name of the Student]
[Name of the University]
Running Head: ASSIGNMENT 1
General Essay Questions (5pts each)
1. What are TIPs? How do these securities provide a hedge against inflation? Discuss the spread between traditionally-structured Treasury notes and TIPs. What factors influence this spread relationship?
TIPs are the Treasury Inflation Protected securities. These are the bonds issued by the government that offer return after the inflation which is also known as a real return. they are different from the nominal or traditional bonds in which the returns are specifically before inflation. This is the way for the investors for offsetting the risk that comes with the inflation. These TIPs offer the hedge against inflation by providing a return which is calculated after taking out the risk of inflation. This is the best way for investors to offset the risk that comes due to the inflation in society. With the strengthening of the economy, inflation can increase, and the return is not expected to increase in the high rate of inflation, so for affording protection against inflation in the economy, TIPs are used in the form of fixed income investment for the destruction of inflation. TIPs are backed by the government and they offer high attractiveness for the investors because the level of risk in these securities is less.
TIP spread is when the yield of TIPS and other US Treasury securities is compared having the same date for the maturity. The difference that exists between both of them is used as payment adjustment for the inflation. The traditionally structured treasury notes do not consider inflation at the start and the yield is used for compensating the investors for the expected future rate of inflation. This spread between both securities is the indication for the market about inflation. The most important factor in influencing the spread relation is inflation because this spread is basically dependent on the inflation rate change. The spread is basically the projection for the inflation and it cannot be predicted how it will change in the future. Comprehensively, the TIP spread is considered to be a reliable measure for predicting the appropriate level of inflation.
2. Fully describe the fixed-income instruments of the money and capital markets. Make sure you cover all the money and bond markets we discussed. Do not just list the instruments.
Among financial markets, there are two most commonly used concepts, one is a capital market and the other one is the money market. The money market is used by the corporate entities and government for lending and borrowing money for a short term. In contrast, capital market contains long term assets with having the maturity of more than a year. In the capital market, the bonds and stock options are available. The securities in the capital market which offer a fixed rate of return are called as fixed - rate capital securities and a combination of features for the comm.
ASSIGNMENT 3
g
[Name of the Student]
[Name of the University]
Running Head: ASSIGNMENT 1
General Essay Questions (5pts each)
1. What are TIPs? How do these securities provide a hedge against inflation? Discuss the spread between traditionally-structured Treasury notes and TIPs. What factors influence this spread relationship?
TIPs are the Treasury Inflation Protected securities. These are the bonds issued by the government that offer return after the inflation which is also known as a real return. they are different from the nominal or traditional bonds in which the returns are specifically before inflation. This is the way for the investors for offsetting the risk that comes with the inflation. These TIPs offer the hedge against inflation by providing a return which is calculated after taking out the risk of inflation. This is the best way for investors to offset the risk that comes due to the inflation in society. With the strengthening of the economy, inflation can increase, and the return is not expected to increase in the high rate of inflation, so for affording protection against inflation in the economy, TIPs are used in the form of fixed income investment for the destruction of inflation. TIPs are backed by the government and they offer high attractiveness for the investors because the level of risk in these securities is less.
TIP spread is when the yield of TIPS and other US Treasury securities is compared having the same date for the maturity. The difference that exists between both of them is used as payment adjustment for the inflation. The traditionally structured treasury notes do not consider inflation at the start and the yield is used for compensating the investors for the expected future rate of inflation. This spread between both securities is the indication for the market about inflation. The most important factor in influencing the spread relation is inflation because this spread is basically dependent on the inflation rate change. The spread is basically the projection for the inflation and it cannot be predicted how it will change in the future. Comprehensively, the TIP spread is considered to be a reliable measure for predicting the appropriate level of inflation.
2. Fully describe the fixed-income instruments of the money and capital markets. Make sure you cover all the money and bond markets we discussed. Do not just list the instruments.
Among financial markets, there are two most commonly used concepts, one is a capital market and the other one is the money market. The money market is used by the corporate entities and government for lending and borrowing money for a short term. In contrast, capital market contains long term assets with having the maturity of more than a year. In the capital market, the bonds and stock options are available. The securities in the capital market which offer a fixed rate of return are called as fixed - rate capital securities and a combination of features for the comm.
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
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Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
2. Meaning
Bond is a debt security in which the authorized issuer
owes the holder a debt and is obliged to repay the
principal and interest at a later date, termed maturity.
It is issued by public authorites,credit intuition,
companies and supranational institutions in the
primary markets.
3. A bond is a promissory note and financial debt.
Instrument issued by corporates and governments to
collect funds from public or investors by offering fixed
interest or there form of returns with specific maturity
term to the investors. In India the term bond is
associated generally with loan able instrument issued
by public undertaking.
4. FEATURES OF BOND
• Nominal, principal or face amount
• Issue price
• Maturity date
(1) short term
(2) medium term
(3) long term
• Coupon
• Coupon dates
• Indentures and covenants
5. • Optionality
(1) call ability
(2) put ability
(3) call dates and put dates
(4) convertible bonds
• Convertible bonds
• Exchangeable bonds
6. TYPES OF BONDS
• Fixed rate bonds
• Floating rate bond
• High yield bond
• Zero coupon bond
• Inflation linked bonds
• Assets-backed securities
• Subordinated bonds
• Perpetual bonds
• Bearer bond
• Registered bonds
• Book entry bonds
• Municipal bond
9. Bond management strategies
Bond
management
strategies
Passive strategies
Buy and hold
strategies
Ladder strategies
Semi active
strategies
Maturity
matching
duration
immunization
Maturity
matching
Active strategies
Sector and asset
substitution
Maturity
adjustment
Quality
diversification
Coupon
adjustment or
yield substitution
Mapping
expected returns
10. Passive strategy Buy and hold strategy : A buy and hold strategy
essentially means purchasing and holding a security to
maturity or redemption and then reinvesting cash
proceeds in similar securities.
Advantages
Any capital change resulting from interest rate change is
neutralized or ignored.
Primarily used by income maximizing investors who are
interested in the largest coupon income over a desired
horizon.
11. Bond ladder strategy: building a bond ladder means
buying bonds scheduled to come due at several different
dates in the future, rather than all in the same year.
This process is known as laddering because each group on
bonds represents a rung on the investments maturity
ladder.
Advantages:
Beneficial in both situation when interest rate rise or fall.
Effective tool for someone who needs large mounts of money
available on certain future dates, for example, to pay for a
child education.
Disadvantages
if interest rates plunge, invester would be better off owning
only long term bonds
Ladders also not make sense for investors with smalll
amounts of money.
12. Semi active strategies
1. Immunization because of changes in the shape of the
term structure and changes in the level of interest rates,
investor faces interest rate risk. The elimination of
these risk is called bond immunization.
Immunization is the investment of asset in such a
manner that the existing business is immunized to a
general change in the rate of interest provided that the
average duration of assets is equal to average duration of
liabilities.
Two types of interest risk
a) Price risk : the price risk occurs due to decrease in price
or value of bond as a result of increasing in interest rate
in the market.
b) Coupon reinvestment risk: CRR arises because the
yield to maturity computation implicitly assumes that all
coupon flows will be reinvested at the promised yield to
maturity.
13. 2. Duration: duration is a concept , which means the
weighted average measure of time period of bond’s life.
This is valuable in understanding how bond’s price
change in response to interest rate change.
Properties
I. High coupon rate result in shorter duration and less
volatility in price
II. The bond has no coupon rate, the duration is equal
to maturity period.
III. Higher , YTM leads to shorter duration , YTM and
duration have inverse relationship.
IV. The duration of a coupon bond increases at
decreasing rate with maturity.
Advantages: Necessary for a study of the effect of
changes in interest rates on bond prices and yields.
14. 3 Dedication: dedication is concerned with financing a
stream of liabilities over time.
The purpose of dedication is to fund a sequence of
liability payments as they come due with no interest rate
risk.
It involve four steps:
I. Liability payment stream is determined
II. Bond universe is selected according to quality
criteria.
III. Investor objectives and constraints are identified
IV. Optimal portfolio is chosen
15. Active Strategies
Sector and asset substitution among bonds say from
central government securities to higher yielding semi
government bonds or from government to corporate bonds.
Maturity adjustments by shortening the maturities when
interest rates are expected to rise and lengthening the
maturities when interest rates are expected to fall.
Quality diversification into various grade of risk, through
expected or actual ratings of bonds by rating agencies.
Coupon adjustments or yield substitutions: bonds of
lower coupons are preferred when speculative capital gains
or losses are aimed at.
16. EVALUATION OF BONDS
1. Goodwill of the cooperation
2. Past earning of the profit
3. Purpose of collection money
17. Valuation of bonds The value of a bond is simply the present value of the security future
cash flows.
Market price and expected yield are the major determinants of bond.
Current year = coupon rate (current year is the coupon payment as a
% of current market price.
CY = CR/P
CURRENT YIELD – Current yeild held investor to measure threir
annual cash flows on a bond every year. if the bond is purchased at
the face value the current yeild and coupon rate will the same. So
with the help of current yeild the investors can find out the rate of
cash flow from their investment evry year.
18. HOLDING PERIOD RETURN - A Bond is held for no.
of years. So, it become necessary to calculate the rate
of return of that period.
Yeild to maturity - (ytm) is the rate of return and
investors expects to earn if the bond is held till
maturity.
19. It is the single discount factor that makes present value
of future cash flow from a bond equal to the current
price of the bond. YTM is the discounted cash flow of
the returns from the bond which represents interest
payment And premium or discount in the price.
YMT is a measure of yield not a measure of returns
from a coupon bond.
20. ASSUMPTIONS
The investors holds the bond till maturity
The intering coupon received a re-invested and the
computed at the YTM rate or at the same interest rat as the
same ytm of the bond
There is no default in payment of coupon or maturity of
value.
Valuation
of YTM
Simple
model
NPV
model