This document discusses sources of long-term financing for businesses. It focuses on debt financing through the issuance of bonds. It describes the basic features of bonds, including par value, coupon rate, maturity date, and current yield. It outlines the roles of trustees and indentures in bond issuances. It also discusses the risks associated with bonds, such as interest rate risk, reinvestment risk, default risk, inflation risk, and liquidity risk. Finally, it covers various types of bonds like zero-coupon bonds, floating-rate notes, junk bonds, convertible bonds, and Eurobonds.
Hey, Do you want to know something about Debt or Equity? Then just one click on Link is given in PPT and you will get import information on it which will help you. So, Do just One Click on Link.....
Hey, Do you want to know something about Debt or Equity? Then just one click on Link is given in PPT and you will get import information on it which will help you. So, Do just One Click on Link.....
A bond is a (written and signed promise) debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate (Coupon Rate).
Fixed Income securities- Analysis and Valuation. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=r9j6Bu3aUNI
Fundamental Principles of Portfolio and Investment Management Analysis Lesa Cote
Portfolio and Investment Management is a technique to make decisions for business growth by considering objectives and balancing risk against performance.
An Income Mutual Fund is a long Term Fund that typically invests in long duration GOI securities; corporate bonds both PSU and private and other money market instruments of different maturities with an objective to generate regular income and capital appreciation.
A bond is a (written and signed promise) debt investment in which an investor loans money to an entity (typically corporate or governmental) which borrows the funds for a defined period of time at a variable or fixed interest rate (Coupon Rate).
Fixed Income securities- Analysis and Valuation. Very useful for CFA and FRM level 1 preparation candidates. For a more detailed understanding, you can watch the webinar video on this topic. The link for the webinar video on this topic is https://www.youtube.com/watch?v=r9j6Bu3aUNI
Fundamental Principles of Portfolio and Investment Management Analysis Lesa Cote
Portfolio and Investment Management is a technique to make decisions for business growth by considering objectives and balancing risk against performance.
An Income Mutual Fund is a long Term Fund that typically invests in long duration GOI securities; corporate bonds both PSU and private and other money market instruments of different maturities with an objective to generate regular income and capital appreciation.
What is loan against property, how to apply, which documents required during processing, how much amount of time the loan is valid, to whom the loan is provided? Get all information from ACE consultancy, the leading commercial loan consultant in Mumbai.
This ppt is all about the long term finance for the business. From which sources a business firm used to get their long term finance to run the business. So i hope it will help you to give your presentation . Thanks for the download. And if you find any mistake, please feel free to comment and inform.
or send me a mail in tatinpisa@outlook.com
Bonds are one of the three main generic asset classes.
Bonds are a long-term liability with a specified amount of interest and specified maturity date. Bonds are used by companies, municipalities, states and sovereign governments to raise money and finance a variety of projects and activities.
A credit derivative is a financial contract in which the underlying is a credit asset (debt or fixed-income instrument). The purpose of a credit derivative is to transfer credit risk (and all or part of the income stream in relation to the borrower) without transferring the asset itself.
A credit derivative serves as a sort of insurance policy allowing an originator or buyer to transfer the risk on a credit asset (of which he may or may not be the owner) to the seller(s) of the protection or counterparties.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the what's app number of my personal pi vendor to trade with.
+12349014282
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the what'sapp contact of my personal pi merchant to trade with.
+12349014282
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
2. Elemental Economics - Mineral demand.pdfNeal Brewster
After this second you should be able to: Explain the main determinants of demand for any mineral product, and their relative importance; recognise and explain how demand for any product is likely to change with economic activity; recognise and explain the roles of technology and relative prices in influencing demand; be able to explain the differences between the rates of growth of demand for different products.
how to sell pi coins in Hungary (simple guide)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 what'sapp contact of my personal pi merchant below. 👇
+12349014282
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the what'sapp number of my personal pi merchant who i trade pi with.
Message: +12349014282 VIA Whatsapp.
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the what'sapp number.
+12349014282
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the what'sapp information for my personal pi vendor.
+12349014282
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
4. The Sources of Long-
Term Financing
A range of long-term sources of
finance are available to
businesses including;
a.debt finance;
b.leasing;
c.venture capital;
d.and equity finance;
4
5. Advantages of Debt
Financing
The lender is not entitled to interfere borrower’s business decisions.
The relationship between two parties is terminated once the debt is
settled;
Lender can’t claim on business’s future earnings;
Business may plan for repayments as they are typically fixed and
known;
Interest payments are tax deductible which smooth the effect of
interest burden;
Finally ,it’s more convenient from legal and regulative perspective;
5
6. Disadvantages of Debt
Financing
6
Debt amount must be repaid in some future
time;
Payments never take account company’s
business cycle or economy’s future conditions as
a result company may confront with insolvency
risk in rough financial periods;
Interest charge is a cash expense and to
cover it some money must be withdrawn from
business which limits company’s growth
opportunities;
The company is typically required pledge some
assets as collateral or sometimes lenders seek for owner’s personal
guarantee;
7. Reasons for Seeking Debt
Finance
Sometimes businesses may need
long-term funds, but may not wish to issue
equity capital;
a. shareholders will be unwilling to
contribute additional capital;
b. company may not wish to involve
outside shareholder;
c. particularly if the company has little or
no existing debt finance it may be easily
available;
7
9. Bonds and Their Features
Basic Terminology
A long-term debt instrument with a final maturity
generally being 10 years or more;
a. par value- amount to be paid the lender at the end of
maturity(it’s usually $1000);
b. coupon rate- a stated rate of interest on a
bond.Calculated by dividing coupon payment by par
value;
c. maturity-bond always have a stated maturity when the
company is obligated to pay bondholder the par value;.
d. current yield-the amount of return an investor will
realize on a bond.Calculated by dividing amount of
interest by market value;
e.
9
10. Trustee and IndentureTrustee and Indenture
TrusteeTrustee – a person or institution
designated by a bond issuer as the
official representative of the
bondholders. Typically, a bank serves
as trustee;
IndentureIndenture – the legal agreement,
also called the deed of trustdeed of trust, between
the corporation issuing bonds and the
bondholders, establishing the terms of
the bond issue and naming the
trustee.
10
11. The Risks of Bond
Interest Rate Risk
Market price of bonds moves inversely to
prevailing interest rates in market;
When market interest rates rise bond’s
value will decrease;
When market interest rates decrease then
an increase in bond’s price will be inevitable;
This situation is relevant only for
bondholders who are going to keep
instrument until maturity;
11
12. The Risks of Bond
Interest Rate Risk
As a result of fluctuations in market rates value or
market price of bond may change;
If there is an increase in market rates bond’s value tend
to decrease and will be sold at discount(less than par
value);
On the contrary when market interest rates pursues
downward trend then increase in bond price will be
expected.This will cause the bond to be traded higher
than it’s par value;
12
13. Example
Interest Rates and Bond Price
You purchased a $10 000 bond at par with a coupon yield
of 4%.It means that your $400 per year is guaranteed if you
keep the bond until the maturity.
Now let’s suppose that you’re intending to sell the bond.
Two scenarios are possible;
a)market rate will rise to 5%;
b)market rate decrease to 3 %;
13
14. Example
Interest Rates and Bond Price
a)If market interest rate rises to 5% your bond offering 4%
will seem unattractive to investors(%5 compared to %4).To
compensate for this you have to decrease the price of bond
to an extent until it promises the same yield with the new
bonds .
Hence,
to offer %5 yield for bond with 4% coupon rate and par
value of $1000 you have to sell bond at a price of $8000.
Bond PriceX5%=$400
Bond Price= $8000
14
15. Example
Interest Rates and Bond Price
b)If market rates fall below coupon rate then on the
contrary your product will be a good option for investors(4%
compared to 3%) and you will be able to increase the price
of bond again up to an extent that 3% yield is preserved.
Hence,
to offer %3 yield for bond with 4% coupon rate and par
value of $1000 you have to sell bond at a price of $13 300
15
Bond PriceX3%= $400
Bond Price= $13 300
16. The Risks of Bond
Reinvestment Risk- danger that bond investors face is
reinvestment risk, which is the risk of having to reinvest
proceeds at a lower rate than the funds were previously
earning;
Call option*****
Default Risk-possibility of default must be considered;
Inflation Risk-purchasing power will decrease so the real
return rate:
Liquidity Risk-repayments are never fully guaranteed;
16
17. Embedded Bond Options
Call option-when interest
rates fall until the last day
that bond issued then the
company will be better of if
it calls the existing
one back and reissue bond
with new prices;
Put option-holder entitled to force
the issuer to buyback the security.
Typically the reason is improved
interest rates;
17
18. Types of Bonds
Zero-coupon bond is bond that makes no periodic interest
payments and are sold at a deep discount from face value;
Floating-rate notes have a variable coupon,equal to a money
market reference rate, like LIBOR or federal funds rate, plus a
quoted spread.;
• Junk bond-Companies that issue junk bonds typically have less-
than-stellar credit ratings, and investors demand these higher yields
as compensation for the risk of investing in them;
18
19. Types of Bonds(cont.)
Convertible bonds include provision
of obtaining debt issuing company’s
stock in future. Typically lower interest
rates are inherent to convertible bonds;
• Eurobond-is a bond issued in a
currency other than the currency of the
country or market in which it is issued;
19
20. DebenturesDebentures
Investors look to the earning power of the firm as their
primary security;
Investors receive some protection by the restrictions
imposed in the bond indenture, particularly any
negative-pledge clausenegative-pledge clause;
A negative-pledge clausenegative-pledge clause precludes the corporation
from pledging any of its assets (not already pledged) to
other creditors;
DebentureDebenture – A long-term, unsecured
debt instrument.
20
21. DebenturesDebentures
In this case, subordinated debenture holders rank
behind debenture holders but ahead of preferred and
common stockholders in the event of liquidation;
Frequently, the security is convertible into common
stock to lower the yield required by subordinated
debenture holders (often less than regular
debentures);
Subordinated DebentureSubordinated Debenture – A long-term,
unsecured debt instrument with a lower claim on
assets and income than other classes of debt;
known as junior debt.
21
22. Retirement of BondsRetirement of Bonds
• The corporation makes a cash payment to the trustee,
which calls the bond;
• The corporation purchases bonds in the open market
and delivers them to the trustee;
Sinking FundSinking Fund – Fund established to periodically
retire a portion of a security issue before maturity.
The corporation is required to make periodic
sinking-fund payments to a trustee.
Two forms for the sinking-fundTwo forms for the sinking-fund
retirement of a bondretirement of a bond::
22
23. Sinking Fund and theSinking Fund and the
Retirement of BondsRetirement of Bonds
When bonds are called for redemption, the
bondholders will receive the sinking-fund call pricesinking-fund call price;
The bonds are called on a lottery basis (by their
serial numbers) and published in periodicals like
The Wall Street JournalWall Street Journal;
Bonds should be purchased in the open market if
the market price is less than the sinking-fund callsinking-fund call
priceprice;
23
24. Sinking Fund and theSinking Fund and the
Retirement of BondsRetirement of Bonds
Volatility in interest rates or a decline in the
credit quality of the firm could lower the market
price of the bond and enhance the value to the
firm of having this option;
Bondholders may benefit from the orderly
retirement of debt (amortization effect), which
reduces the default risk of the firm and adds
liquidity to bonds outstanding;
24
25. Sinking Fund and theSinking Fund and the
Retirement of BondsRetirement of Bonds
Many bond issues are designed to have a larger final
payment to pay off the debt.
For example, a corporation may undertake a $10
million, 15-year bond issue. The firm is obligated to
make $500,000 sinking-fund payments in the 5th
through 14th
years. The final balloon payment in the
15th
year would be for the remaining $5 million of
bonds.
Balloon PaymentBalloon Payment – A payment on debt that is
much larger than other payments.
25