This document defines bonds and bond terminology. It discusses the different types of bonds, including treasury bonds, corporate bonds, municipal bonds, and more. Key bond concepts are explained such as par value, coupon rate, maturity date, bond ratings, and bond valuation. Bond valuation is calculated as the present value of expected future cash flows from interest payments and principal repayment. The relationships between bond values and interest rates are also summarized.
BONDS, FEATURES OF BONDS, BOND VALUATION, MEASURING YIELD, ASSESSING RISK, TYPES OF LONG- TERM DEBT INSTRUMENTS, SERIAL BONDS, TYPES OF RISK, SEMI- ANNUAL BONDS, YIELD TO CALL, YIELD TO MATURITY, DEFAULT RISK & FACTORS AFFECTING DEFAULT RISK & BOND RATINGS, etc.
BONDS, FEATURES OF BONDS, BOND VALUATION, MEASURING YIELD, ASSESSING RISK, TYPES OF LONG- TERM DEBT INSTRUMENTS, SERIAL BONDS, TYPES OF RISK, SEMI- ANNUAL BONDS, YIELD TO CALL, YIELD TO MATURITY, DEFAULT RISK & FACTORS AFFECTING DEFAULT RISK & BOND RATINGS, etc.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
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
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 telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
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 telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
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
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
2. Definition of a Bond
Bond-
A bond is a long-term promissory note that
promises to pay the bondholder a
predetermined fixed amount of interest each
year until maturity. At maturity the principle
will be paid to the bondholder.
3. Types of Bonds
• Treasury Bond: also known as government bonds, issued by the U.S. federal
government. Three types: bills, notes, and bonds.
• Corporate Bonds: Issued by corporations, which unlike government bonds
has default risk.
• Municipal Bonds: Issued by state or local government. Advantage no
federal tax on the interest.
• Foreign Bonds: Issued by foreign government or corporations.
• Debentures: unsecured long-term debt
• Subordinated debentures: bonds that have a lower claim on assets in the
event of liquidation than do other senior debt holders
• Mortgage bonds: bonds secured by a lien on specific assets of the firm, such
as real estate
• Eurobonds: bonds issued in a country different from the one in whose
currency the bond is denominated; for instance, a bond issued in Europe or
Asia that pays interest and principal in U.S. dollars
• Zero and low coupon bonds: allow the issuing firm to issue bonds at a
substantial discount from their $1,000 face value with a zero or very low
coupon
• Junk bonds: bonds rated BB or below
4. Terminology
A.A bond’s par value is the amount that will be repaid by the firm when the
bond matures, usually $1,000
B.The contractual agreement of the bond specifies a coupon interest rate
that is expressed either as a percent of the par value or as a flat amount of
interest which the borrowing firm promises to pay the bond holder each
year. For example: A $1,000 par value bond specifying a coupon interest
rate of 9% is equivalent to an annual interest payment of $90
C.The bond has a maturity date, at which time the borrowing firm is
committed to repay the loan principal.
D.An indenture (or trust deed) is the legal agreement between the firm
issuing the bonds and the bond trustee who represents the bondholders. It
provides the specific terms of the bond agreement such as the rights and
responsibilities of both parties.
5. Terminology (Cont.)
E. Bond ratings:
1. Bond ratings are simply judgements about the future risk potential of the
bond in question. Bond ratings are extremely important in that a firm’s
bond rating tells much about the cost of funds and the firm’s access to
the debt market
2. Three primary rating agencies exist-Moody’s, Standard & Poor’s, and
Fitch Investor Services
3. The different ratings and their implications are described
Recently the bond rating agencies have been criticize for not upgrading or downgrading quick
enough.
6. Definition of Value
A.Book value is the value of an asset shown on a firm’s balance sheet,
which is, determined by its historical cost, rather than its current
worth.
B.Liquidation value is the amount that could be realized if an asset is
sold individually and not as part of going concern
C.Market value is the observed value of an asset in the marketplace
where buyers and sellers negotiate an acceptable price for the asset
D.Intrinsic value is the value based upon the expected cash flows from
the investment, the riskiness of the asset, and the investor’s
required rate of return. It is the value in the eyes of the investor and
is the same as the present value of expected future cash flows to be
received from investment
7. The value of a bond is a function of three
elements.
1. The amount and timing of the asset’s expected cash flow
2. The riskiness of these cash flows
3. The investor’s required rate of return for undertaking the
investment
8. Bond Valuation
Say IBM borrowed $100 million by selling 100,000 individual bonds for $1000
each. IBM promised to pay the bondholder an annual interest of $80 for
10 years.
M = FV = The par value (stated face value) of the bond (usually $1000)
= $1,000
N = Maturity date – date on which par value must be repaid = 10 years
CR = Coupon interest rate – issuer pays interest payment to every
bondholder, usually every 6 months or every year
(Note: Most corporate bonds pay interest on a semi-annual basis)
= Interest payment / Par value = 80/1000 = 8%
I = PMT = Interest payment
= Coupon rate x Par value = 0.08 x 1,000 = $80
Rd = I/Y = Required rate of return for the bond holder or the bond’s
market rate
9. Bond Valuation
The value of a bond is simply the present value
of the future interest payments and maturity
value discounted at the bondholder’s required
rate of return. This may be expressed as:
Vb = PV of Interest PMTs + PV of Par Value
∑
= +
+
+
=
N
t
N
d
t
d
b
r
Value
Par
r
PMT
Interest
Annual
V
1 )
1
(
)
1
(
10. IN OUR EXAMPLE…
I. Let I/Y = rd = 6% (Note it is lower than coupon rate)
FV = Par Value = $1,000
PMT = $ 80
P/Y =1,
C/Y =1
n = 10
I/Y = rd = 6%
CPT PV = $ 1,147.20 ( Selling at a premium of $147.20 (1147.20-1000)
t= 0 t=10
80
1,000
t= 2
80
t= 1
80
t=9
80
. . . . . . . . . . . . .
11. IN OUR EXAMPLE…
II. What if I/Y = rd = 10% (Note it is higher than coupon rate)
Then,
FV = Par Value = $1,000
PMT = $ 80
P/Y =1, C/Y =1
n = 10
I/Y = rd = 10%
CPT PV = $877.11 [Selling at a discount of $122.89 (1,000-877.11)]
t= 0 t=10
80
1,000
t= 2
80
t= 1
80
t=9
80
. . . . . . . . . . . . .
12. IN OUR EXAMPLE…
III. What if I/Y = rd = 8 % (Note it is the same as coupon rate)
Then,
FV = Par Value = $1,000
PMT = $ 80
P/Y =1, C/Y =1
n = 10
I/Y = rd = 8%
CPT PV = $1,000 (Selling at Par value)
t= 0 t=10
80
1,000
t= 2
80
t= 1
80
t=9
80
. . . . . . . . . . . . .
13. Bond Valuation with Semi-annual Compounding
What if IBM (in the previous example) pays a semi-annual interest
of $40 ($80/2) for 10 years.
1. Divide annual coupon interest payment by 2 [ 80/2 = $40]
2. Multiply n by 2 [n = 10 x 2 = 20]
3. Divide kb by 2 [ But when we use calculator we still use kb but set
P/Y = 2, C/Y = 2]
V
b=
A
n
n
u
a
lI
n
t
e
r
s
tP
M
T
(
1
+
r
d
2
)
t
+
P
a
r
V
a
l
u
e
(
1
+
r
d
2
)
N
t=
1
N
∑
15. Bondholder’s Expected Rate of Return
(Yield to Maturity)
A. The bondholder’s expected rate of return is the
rate the investor will earn if the bond is held to
maturity, provided, of course, that the company
issuing the bond does not default on the
payments. This is called the Yield to maturity
A. We compute the bondholder’s expected rate of
return by finding the discount rate that gets the
present value of the future interest payments
and principal payment just equal to the bond’s
current market price
16. Yield to Maturity (Cont.)
1. Say, an investor bought a bond in the market place for $1,200 with
a par value of $1,000, annual coupon rate of $80, and matures after
10 years. What is the yield to maturity (YTM)?
PV = -1,200
FV = 1,000
PMT = 80
n = 10
P/Y = C/Y = 1
CPT i = YTM = 5.38%
t= 0
-1,200
t=10
80
1,000
t= 2
80
t= 1
80
t=9
80
. . . . . . . . . . . . .
17. Yield to Maturity (Cont.)
2. What if the bond pays semi-annual payments of $40?
PV = -1,200
FV = 1,000
PMT = 40
n = 10x2 = 20
P/Y = C/Y = 2
CPT i = YTM = 5.39%
t= 0
-1,200
t=20
40
1,000
t= 2
40
t= 1
40
t=19
40
. . . . . . . . . . . .
18. Current Yield
The current yield on a bond refers to the ratio of annual
interest payment to the bond’s market price
Note: Set your decimal places to 4 in your calculator
e.g. Annual interest PMT = $80
Market price of bond = $1,200
C
u
r
r
e
n
t
y
i
e
l
d
=
C
Y
=
A
n
n
u
a
l
I
n
t
e
r
e
s
t
P
M
T
M
a
r
k
e
t
P
r
i
c
e
o
fB
o
n
d
=
8
0
1
2
0
0
=
6
.
6
7
%
19. Yield to Call (YTC)
Yield to Call (YTC) is the rate of interest earned on a bond if it
was called before its maturity date.
e.g. current price of a bond is $1,150, with an annual payment
of $150, with remaining 8 years to maturity. The firm can
call the bond in 2 years with a price of $1,350. What is the
YTC if the bond was called?
PV = -1,150
FV = Call Price = 1,350
PMT = 150
n = 2
P/Y = C/Y = 1
CPT i = YTC = 20.92%
20. Bond Value: Three Important Relationships
A. First relationship
1. A decrease in interest rates (required rates of return) will cause the value of
a bond to increase; an interest rate increase will cause a decrease in value.
The change in value caused by changing interest rates is called interest rate
risk.
B. Second relationship
1. If the bondholder’s required rate of return (current interest rate) equals the
coupon interest rate, the bond will sell at par , or maturity value
2. If the current interest exceeds the bond’s coupon rate, the bond will sell
below par value or at a “discount”
3. If the current interest rate is less than the bond’s coupon rate, the bond will
sell above par value or at a “premium”
C. Third relationship
A. A bondholder owning a long-term bond is exposed to greater interest rate
risk than when owning a short-term bond.
21. Zero Coupon Bonds
Only pay par value at maturity
No interest payment
Always sells at a discount
e.g. A zero coupon bond with par value of $10,000 and matures in 5 years.
The required rate of return of such bonds is 8%. What is the value of the
bond?
FV = 10,000
i = 8% or
n = 5
P/Y = C/Y = 1
CPT PV =$6,805.83
t=5
10,000
t= 0
PV =?
t= 2
t= 1 t=3 t=4
P
V=
F
V
(
1
+
k
b
)
N
=
1
0
,
0
0
0
(
1
+
0
.
0
8
)
5
=
$
6
,
8
0
5
.
8
3
22. Perpetual Bonds or Consuls
Only pays interest indefinitely
No par value at maturity (no maturity)
e.g. Canadian government issued a consul with a stated value of
$1,000 and coupon rate of 9%. The required rate of return of such
consuls is 7%. What is the value of the consul?
Interest payment = Coupon rate x Par Value
= 0.09 x 1,000 = $90
PV of these interest payments is
t=∞
90
t= 0
PV =?
t= 2
90
t= 1
90
. . . . . . . . . . . . . . . . . . . .
P
V
c
o
n
s
u
l =
P
M
T
i
=
9
0
0
.
0
7
=
$
1
,
2
8
5
.
7
1