Essays Tagged: "interest payments"

The Debt, outline of Canada's economic crisis, an economic catastrophe

of the national debt hole it is in. Eliminating the debt will not only free up money being spent on interest and reduce taxes, but make Canada a more feasible place for future generations to live and ... ervices. Presently, thirty-five cents of every tax dollar the federal government raises is used for interest payments alone on the debt. Though there have been operating surpluses within the federal g ...

(3 pages) 76 0 4.0 Mar/1997

Subjects: Social Science Essays > Economics

The Primary Immediate Causes of the French Revolution.

the Controller general of finances, Calonne reported to the King that radical reform was required. Interest payments sucked the government dry and the king's ministers found it impossible to raise ne ... g the prices of flower and bread[ ].In the 1780s, the debts of Louis XVI's government were immense. Interest payments sucked the government dry. At the same time, the king's ministers found it impossi ...

(11 pages) 206 3 4.6 May/2003

Subjects: History Term Papers > European History > The French Revolution

Compare the financial situations of two companies.

of a firm to meet its current obligations, and solvency analysis, which is a firm's ability to meet interest payments and other financial long term obligations. Profitability is also very important to ... E than them.Solvency AnalysisSolvency is the term used when discussing a companies ability to cover interest and payments on long term liabilities. (Accounting Text and Cases, 10th Edition, By Anthony ...

(12 pages) 525 0 3.3 May/2003

Subjects: Businesss Research Papers > Case Studies

Junk bonds market

ratings measure the riskiness of bonds (that is, the chance that the issuer will be unable to make interest payments or repay the principal). The riskier a bond, the lower its rating.Bond investors h ... nds came from companies that had previously been investment grade, but had gone into decline. Their interest yields at face value had not been very high, but with the bonds selling at a fraction of fa ...

(4 pages) 98 0 3.7 Mar/2005

Subjects: Businesss Research Papers > Markets & Exchanges

To what extent should debt be justified in the economy?

Keynesian theory states that governments should pay off debt, reducing the amount of money lost to interest payments. In Keynesian theory debt from fiscal spending is only justifiable when the econom ... 140 billion dollars went to this cause, the single largest debt pay down in American history. Lower interest rates resulting from less debt cut the average American families car loan payments by 200$ ...

(4 pages) 88 0 5.0 Aug/2005

Subjects: Social Science Essays > Economics

Risks of a sustained high Current Account Deficit (notes)

costs, reflected by the large net income deficit on the CAD. Foreign debt must be serviced through interest payments that vary according to the level of interest rates in Aus & overseas, and prof ...

(2 pages) 23 0 2.3 May/2006

Subjects: Businesss Research Papers > Accounting

Economy In Argentina

na is going to launch a reconstruction plan today. This plan consist of offering bond holders lower interest payments and extended full repayment by three years. This type of plan has caused many inve ... This plan will also try to help Argentina to save up to $4 billion a year by lowering the amount of interest paid on notes to 7% from 11%. The government hopes the lowering interest along with other s ...

(1 pages) 12 0 0.0 Dec/2001

Subjects: Businesss Research Papers > Case Studies

Long-Term Financing Paper

company to make payment than do preferred or common stockholders, and (3) the tax-deductibility of interest payments lowers the debt cost to the firm substantially.Equity capitalEquity capital consis ... the debt ratio and the debt-equity ratio to measure the firm's degree of indebtedness or the times interest earned ratio and the fixed-payment coverage ratio to measure its ability to meet fixed fina ...

(3 pages) 229 0 3.0 Aug/2007

Subjects: Businesss Research Papers > Marketing

Bonds and The Bond Market

ple, if one chooses a stable and profitable bond, it will provide a steady source of income through interest payments during the lifetime of the bond. As well, the risk when investing in a bond is con ... d downs. However, the return rate on bonds has surpassed the inflation rate. Bonds have averaged an interest rate of over six and a half percent, while the inflation rate has averaged under four and a ...

(11 pages) 94 0 3.0 Feb/2008

Subjects: Social Science Essays > Economics

A Nation In Debt

money, this puts you in debt, or state of owing money, to the loaner. On top of the debt you have interest, or the fee charged for letting you borrow the money. Simple right? Let’s keep going. ... ords this means your budget deficit is rising. Not only does this increase your debt owed, but the interest also rises. The higher the budget deficit, the more the debt grows. At some point the int ...

(4 pages) 26 0 0.0 Feb/2008

Subjects: Social Science Essays > Economics

American Express Securitization

y SheffieldMatt UlmanFor the "stress test" of the securitization we assumed that A would be paid an interest rate that was the average spread for AAA securities over the five year treasury rate. For B ... yield spread on A tranche0.525%0.375%monthly rate on a tranche0.560%0.548%monthly interest payments to A (millions)5.59545.4778yield spread on B tranche1.050%0.750%...

(3 pages) 31 0 2.0 Apr/2008

Subjects: Businesss Research Papers > Case Studies

Debt and Equity

company to make payment than do preferred or common stockholders, and (3) the tax-deductibility of interest payments lowers the debt cost to the firm substantially.Equity CapitalEquity capital consis ... the debt ratio and the debt-equity ratio to measure the firm's degree of indebtedness or the times interest earned ratio and the fixed-payment coverage ratio to measure its ability to meet fixed fina ...

(2 pages) 155 1 3.5 Apr/2008

Subjects: Businesss Research Papers > Management

Global Financial Crisis: Causes and Impact

s proportions. Collapse of the US housing market, highly leveraged financial transactions and a low interest rate encouraging borrowings, among others, have all contributed to the downturn in the glob ... nturn in the global financial market. Let us now look at these various causes in greater detail.Low Interest RatesFollowing the burst of the dot com bubble and the possibility of recession looming the ...

(9 pages) 318 0 4.3 Mar/2009

Subjects: Businesss Research Papers > Markets & Exchanges

The IPO Process

the bank will not lend any money. Additionally, debt involves contractual servicing in the form of interest payments. If the firm misses one such payment, it is technically breaching its contract, an ... e a successful IPO. As will be discuss in the second half of the essay, pricing IPOs is of greatest interest in a number of financial studies including underpricing and long term underperformance. Oft ...

(20 pages) 102 0 3.0 Apr/2009

Subjects: Businesss Research Papers > Case Studies

Case analysis and comment: St George Bank Limited v FCT [2008] FCA 453.

lion to SGB under an indenture, and a debenture was issued by SGB to LLC. SGB claimed deduction for interest payable to LLC pursuant to the debenture but the Federal Court held that the payments of in ... is more likely to be a capital expense. Allsop J held that the advantage sought and obtained by the interest payments was a part of acquiring and maintaining the capital structure. In this respect, Al ...

(6 pages) 15 0 0.0 May/2009

Subjects: Law & Government Essays > Law

Identify the risks of holding debt securities. Analyze the role(s) of debt securities that led to the current credit crisis.

but its creditors. In return for the loan, the compensation for the bondholders or note-holders is interest payments during the life of the bond or note. The interest rate on bonds and notes can be a ... ating rate and zero-coupon. The debt securities offer periodical return with stable and predictable interest payments; however many investors may not realise that bonds carry certain degree of risks l ...

(6 pages) 64 0 0.0 May/2009

Subjects: Businesss Research Papers > Markets & Exchanges

America’s National Debt

bt is projected to be more than $24 trillion, or double. With growing debt and expected increase in interest rates as the economic recovery strengthens, interest payments on the debt are poised to sky ... nd reduces personal savings. Additionally, large deficits continually increase the debt, and as the interest paid on the debt moves up, the government must run a larger deficit to finance the debt. Th ...

(3 pages) 20 0 0.0 Dec/2010

Subjects: Businesss Research Papers