Essays Tagged: "Par value"

Examine the effects of a change in interest rates on the price of equity and Government bonds. Briefly explain what other major factors affect the price of equity. 1911 Words

pay when they issued the gilt because stocks are sometimes issued at a premium or discount o their par value.The prices of gilts are determined primarily by interest rates but are also influenced by ... deposit account over a bond increases. The price must adjust to make it a favourable investment comparable to a deposit account. It can also be seen from this example that interest rate changes have ...

(7 pages) 53 0 3.7 Apr/2004

Subjects: Social Science Essays > Economics

Examine the effects of a change in interest rates on the price of equity and Government bonds. Briefly explain what other major factors affect the price of equity. 1911 Words

pay when they issued the gilt because stocks are sometimes issued at a premium or discount o their par value.The prices of gilts are determined primarily by interest rates but are also influenced by ... deposit account over a bond increases. The price must adjust to make it a favourable investment comparable to a deposit account. It can also be seen from this example that interest rate changes have ...

(8 pages) 82 1 3.4 Apr/2004

Subjects: Social Science Essays > Economics

Roles of International Financial Institutions

sed on several conditions which member nations would have to comply with. Each would agree to set a par value for its currency. This meant a fixed value would be given to each member's unit of currenc ... es informed the IMF that it would no longer buy and sell gold to settle international transactions. Par values for currencies could not exist, and this system was abolished. Currencies have since been ...

(4 pages) 326 0 3.8 Jun/2004

Subjects: Social Science Essays > Economics > Foreign & International Economics

Home Products: Stock and Bond Valuation

nted first, since the relatively certain cash flows are broken into an annuity and a payment of the par value at some specific date in the future. Preferred stock valuation follows bond valuation and ... 5.625 Yield = 10.26%4.What is the required rate of return for the preferred stock? How this rate compare to the YTM for the HPI 9 1/8 % bond? Is this difference what you would have expected from a ris ...

(3 pages) 165 0 4.5 Aug/2006

Subjects: Businesss Research Papers > Accounting

Yield to Maturity Paper

(Bo), and hold it until maturity. The yield to maturity on a bond with a current price equal to its par, or face, value will always equal the coupon interest rate. When the bond value differs from par ... rom the coupon interest rate. In other words, the current value (Bo), the annual interest, (I), the par value, (M), and the years to maturity (n), are known, and the yield to maturity must be found (A ...

(3 pages) 101 0 3.7 Jul/2007

Subjects: Businesss Research Papers > Accounting

Bank

the market value of equity due to a 1% increase in interest rates is also assessed. This is then compared with the PVBP model.An assessment of Australia Bank's Value at Risk and Daily Earnings at Risk ... 0.00$235,940.0010 Years$13,099,840.00-$10,983,900.00$2,115,940.00Total$25,522,779.43Question 3a)The PAR rates for 30 days, 90 days, 180 days, 2 years, 5 years and 10 years are given by the RBA. The PA ...

(12 pages) 49 0 5.0 Sep/2007

Subjects: Businesss Research Papers > Case Studies

Yield To Maturity

ansactions easier to understand. There are key words and phrases that pertain to stocks and bonds separately. This paper will explain the concept of yield to maturity.Yield to maturity (YTM) is the ra ... uys a bond at 110 he or she will pay $1,100 for every $1,000 bond.A bond purchased at a discount to par, or face, value will have a YTM which is higher than the current yield. A bond bought at a premi ...

(2 pages) 83 1 3.7 Sep/2007

Subjects: Businesss Research Papers > Accounting

Key Financial Relationships Paper

Coca-Cola Company and PepsiCo are two companies competing in the same industry, and in order to compare the two properly the data from their financial statements has to be understood. This paper will ... d Pepsi's operating statements (the income statements and the statement of cash flows) and their comparative balance sheets is referred to as articulation and items on the operating statements help ex ...

(7 pages) 218 0 5.0 Jul/2008

Subjects: Businesss Research Papers > Accounting

Owner's Equity Paper

before I can answer the questions for this assignment.Why is it important to keep paid-in capital separate from earned capital?Paid in capital is the capital received from investors in exchange for st ... tal that is generated as a result of the operation of the company but is the excess amount from the par value of the stock that the investors are willing to pay in exchange for stock. Paid-in capital ...

(3 pages) 38 1 4.0 May/2009

Subjects: Businesss Research Papers > Accounting

Financial Risk in Sukuk structures

uk structures and the way that Sukuk investment certificate holders will probably be treaded, as compared with other more-conventional interest-based securities. This research also contrasts the risk ... ia. The conventional interest paying bond structure is prohibited by Islamic law, thus, in order to participate in the financial markets, Sukuk issuers sell Sukuk certificates to investors, who will l ...

(10 pages) 12 0 3.0 Feb/2010

Subjects: Social Science Essays > Communication Studies

The Health of Krispy Kreme

is $491,540 / $410,487 for year ended February 2, 2003.Krispy Kreme issued 10,000 shares with a no par value preferred stocks in 2001 with none in 2002 and 2003. In 2002 they decided to issue 100,000 ... 1 with none in 2002 and 2003. In 2002 they decided to issue 100,000 share of common stock with a no par value with 54,271 shares outstanding, and then issued 300,000 more shares with 56,295 outstandin ...

(4 pages) 28 0 0.0 Apr/2010

Subjects: Businesss Research Papers > Accounting