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Corporate Bonds
 
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Build your investment knowledge about corporate bonds and why they are issued, along with the different risks and benefits that are involved with secured and unsecured corporate bonds. Questions or Comments? Have a question or topic you’d like to learn more about? Let us know: Twitter: @ZionsDirectTV Facebook: www.facebook.com/zionsdirect Or leave a comment on one of our videos. Open an Account: Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com Bid in our Auctions: Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com
Views: 45842 Zions TV
Bond Investing : Why Do Companies Issue Bonds?
 
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Companies issue bonds to raise money to buy equipment, to retool, to remodel buildings and to expand. Find out when a person can expect to get their money back from a company-issued bond with help from a licensed financial planner in this free video on bonds and investing. Expert: William Rae Contact: www.hbwfl.com Bio: William Rae has been licensed in the insurance and financial fields for more than 30 years. Filmmaker: Christopher Rokosz
Views: 1715 ehowfinance
Bond Issuance Examples
 
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Roger Philipp, CPA, CGMA, presents a basic bond issue with a face value of $1 million, term of 5 years, and stated or coupon rate of 8% in the video 11.01 - Bond Issuance Examples. He also shows the journal entries for issuance and interest payments at market rates or effective rates of 8%, then 10%, and then 6%. If the bond is issued to yield 8%, then the bond is issued at par and interest expense will equal the interest payment. If the effective interest rate is 10% then the bond is issued at a discount. Now interest expense will no longer equal the cash coupon interest paid. Roger explains how to set up the journal entry, keeping things simple for now with straight-line amortization of the bond discount. Roger continues the problem by showing in the journal entry how the issuer’s interest expense will equal the market rate of 10%. Finally, Roger walks through the journal entries for this 8% face rate bond issued at a premium with a yield of 6%. As an advanced bonus, Roger has us consider the effects of the bond interest payments on the statement of cash flows. Connect with us: Website: https://www.rogercpareview.com Blog: https://www.rogercpareview.com/blog Facebook: https://www.facebook.com/RogerCPAReview Twitter: https://twitter.com/rogercpareview LinkedIn: https://www.linkedin.com/company/roger-cpa-review Are you accounting faculty looking for FREE CPA Exam resources in the classroom? Visit our Professor Resource Center: https://www.rogercpareview.com/professor-resource-center/ Video Transcript Sneak Peek: Now, next page it says issuance of bonds example and we're going to go through this example. Face value of the bonds, million dollars. Term, five year versus what? Term versus serial bond which matures in installments. Stated interest rate 8%. That's how much cash I'm going to get. I'm going to get 8% of a million dollars or $80,000 in cash but what am I earning? That's a different question. Then it says effective or market or yield is eight in example A, ten in example B, six in example C. Notice that we're going to be doing three examples. One is going to be eight, eight which is issued at par, issued at face. We don't have to worry about the discounted premium then we'll go to a discount example, then we'll go to a premium example and then life will be beautiful for you, things will make sense.
Views: 22768 Roger CPA Review
Strategy: Buying Corporate Bonds of Busted Companies
 
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Some investors take short positions in the shares of a company while buying bonds that company might have issued. PLEASE LIKE AND SHARE so we can bring you more! How does that strategy work? Lucian Miers, a renowned short seller comments. Its a good hedging strategy if you know what you're doing. You buy the bonds and you sell the shares against them on the basis that there will be a debt for equity swap at a much lower price than the current share price so your bonds will turn into huge amounts of equity which you've hedged by selling the share higher up. If you've found this video useful, please click the like button and share it with your friends and remember to SUBSCRIBE to remain up-to-date!
Views: 560 UKspreadbetting
Introduction to bonds | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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What it means to buy a bond. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/corporate-debt-versus-traditional-mortgages?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 456573 Khan Academy
What is a Bond | by Wall Street Survivor
 
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What is a bond? Learn more at: https://www.wallstreetsurvivor.com A bond is a debt investment in which an investor loans money to a corporate entity or government. The funds are borrowed for a defined period of time at either a variable or fixed interest rate. If you want a guaranteed money-maker, bonds are a much safer option than most. There are many times of bonds, however, and each type has a different risk level. Unlike stocks, which are equity instruments, bonds are debt instruments. When bonds are first issued by the company, the investor/lender typically gives the company $1,000 and the company promises to pay the investor/lender a certain interest rate every year (called the Coupon Rate), AND, repay the $1,000 loan when the bond matures (called the Maturity Date). For example, GE could issue a 30 year bond with a 5% coupon. The investor/lender gives GE $1,000 and every year the lender receives $50 from GE, and at the end of 30 years the investor/ lender gets his $1,000 back. Bonds di er from stocks in that they have a stated earnings rate and will provide a regular cash flow, in the form of the coupon payments to the bondholders. This cash flow contributes to the value and price of the bond and affects the true yield (earnings rate) bondholders receive. There are no such promises associated with common stock ownership. After a bond has been issued directly by the company, the bond then trades on the exchanges. As supply and demand forces start to take effect the price of the bond changes from its initial $1,000 face value. On the date the GE bond was issued, a 5% return was acceptable given the risk of GE. But if interest rates go up and that 5% return becomes unacceptable, the price of the GE bond will drop below $1,000 so that the effective yield will be higher than the 5% Coupon Rate. Conversely, if interest rates in general go down, then that 5% GE Coupon Rate starts looking attractive and investors will bid the price of the bond back above $1,000. When a bond trades above its face value it is said to be trading at a premium; when a bond trades below its face value it is said to be trading at a discount. Understanding the difference between your coupon payments and the true yield of a bond is critical if you ever trade bonds. Confused? Don't worry check out the video and head over to http://courses.wallstreetsurvivor.com/invest-smarter/
Views: 108785 Wall Street Survivor
Relationship between bond prices and interest rates | Finance & Capital Markets | Khan Academy
 
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Why bond prices move inversely to changes in interest rate. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/treasury-bond-prices-and-yields?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/bonds-tutorial/v/introduction-to-the-yield-curve?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Both corporations and governments can borrow money by selling bonds. This tutorial explains how this works and how bond prices relate to interest rates. In general, understanding this not only helps you with your own investing, but gives you a lens on the entire global economy. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 466282 Khan Academy
How bonds work
 
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Investing can sometimes seem like either like a gamble or very dull. At the "gambling" end of the spectrum are shares, with the possibility of swift ups in price and swift drops in price. At the other end is cash in the bank -- a predictable investment with few changes day-to-day or month-on-month. Investors looking for a middle ground and looking to diversify do have other options. They can consider bonds. Bonds are something of a mystery to many people -- perhaps because they are not often talked about. But bonds can play an important role in managing investments. They can be a half way house between the risk of shares and property and the safety of cash. How do bonds work? At the most basic level, a bond is a loan. Or, more technically, it is a large loan that has been split into packages and sold to investors. Bond holders typically make money by receiving regular payments of interest (known as coupons) during the life of the loan. When the loan ends, their original investment is returned. Bonds may have lives of just a year or two or for 10, 20 or even 30 years. You can buy individual bonds or opt for units in a bond fund run by an asset manager. Like shares, bonds or bond funds can usually be sold at any time and the value of your investment may rise or fall. But bond prices usually move less than shares. That is why they are considered safer than shares but they are more risky than a bank deposit. The original investment and the coupon payments are secure for bonds, while with shares, there is no guarantee of receiving dividend payments -- or your original investment. Looking a bit more closely, there are two main types of bonds -- corporate bonds and government bonds. Corporate bonds are loans made by companies. Government bonds are loans made by governments. Corporate bonds are more risky because the company issuing the bond may go bankrupt. In bankruptcy, though, bond holders are paid before shareholders. Governments rarely go bankrupt so government bonds are safer than corporate bonds. And the lower interest rate on government bonds reflects this. Getting more technical, different types of bonds are designed to work in different financial conditions. In particular, index-linked bonds pay coupons and the original investment in a way that compensates for inflation. The can be attractive to investors who want to ensure the value of their investment does not fall if prices rise. Bonds don't have to be part of your investment portfolio. Some people are happy to invest exclusively in shares and property but if you want to spread your investment risk, if you want to diversify, remember that there is always a half way house in bonds.
Views: 85387 ING eZonomics
What are Municipal Bonds? | Fidelity
 
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Learn the details behind general obligation municipal bonds – what they are, why they are created, and how they work – with this illustrated video by Fidelity. To learn more about municipal bonds, please visit https://www.fidelity.com/fixedincome-bonds/individual-bonds/municipal-bonds. To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ----------------------------------------------------------------------------------------------- Many people purchase municipal bonds as part of their overall investing strategy, but there’s quite a story behind how they are created, how they work, who’s involved. The municipal bond process can be a complicated one, so we’ll try to simplify it for you. Our story begins by paying a visit to Anytown, USA. Anytown is a great place to live. There’s a thriving cultural scene, good schools, and a strong business environment. It’s no wonder that many families have moved here. But, with lots of families now living in Anytown, the schools are bursting at the seams. The mayor, town council, and school district leaders all agree that a brand new school is needed, in addition to expansions to some of the existing school buildings. But, at an estimated cost of $30,000,000, how will the town pay for it? The town leaders come up with a plan to raise these funds by issuing bonds. This means that Anytown will borrow money from investors with the expectation of paying them back, with interest, over time. The people who will actually use the school building in the future will also be the folks paying for it. Anytown will use property tax revenues to repay the investors, backed by the full faith and taxing authority of the town. This is called a “general obligation municipal bond.” But, things can’t move forward just yet. Voter approval of the proposal is required. So, a bond proposal is developed and put on the ballot, as part of an election. The votes are tallied and the proposal is passed. At this point in our story, some new characters enter the scene: the underwriter, the bond counsel, and in most cases, the financial advisor. The financial advisor helps Anytown make decisions regarding the bond issue and works with the underwriter to determine pricing and distribution to investors. The underwriter acts as a liaison between the town and potential investors when bringing the bond issue to market. An underwriter can be chosen in two ways: via competitive sale or negotiated sale. The leaders of Anytown decide to go the competitive route, and put the bond issue out to bid. This is where the bond counsel, Smith & Jones Law Firm, enters the picture. Smith & Jones prepares the bond documents, including the Official Statement, and since Anytown has chosen the competitive route, a Notice of Sale. The Official Statement contains all the information a prospective investor needs in order to invest in Anytown’s bond issue. The underwriter will review the Official Statement and decide whether to bid on the bond. The bond counsel also writes the legal opinion, which provides justification and law for the tax exempt status of the issue and ensures that the bonds are valid and binding obligations for Anytown. The firm does not comment on the investment merit of the bond issue. Now that the legal opinion is in place, the Notice of Sale can be completed and posted. ABC Investment Bank sees the ad and is interested in underwriting it, with the ultimate goal of buying the muni bond issue from Anytown, and reselling it to investors. Before submitting a bid, however, they would like to invite other investment banks to participate with them, so they decide to form a syndicate and act as the syndicate manager. Forming a syndicate will allow the bank to share the marketing and distribution duties, as well as some of the financial risk of underwriting the bond issue. Two banks, JKL and XYZ, agree to join ABC Syndicate and they submit a bid. Back at Anytown town hall, the bid is reviewed, along with several others up for consideration. After much deliberation, the bond issue is awarded to the syndicate formed by ABC Investment Bank because they turned in the lowest borrowing cost. The syndicate goes to work as the underwriter, reaching out to individual and institutional investors to determine their interest in purchasing the bonds [...] Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, RI 02917 608004.3.0
Views: 57822 Fidelity Investments
Why Do Companies Buy Bonds?
 
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The same attention should be spent before purchasing stocks and bonds 30 apr 2013 apple has a cash pile larger than the total valuations of most other companies. In return, the company makes a legal commitment to pay interest on principal and, in most cases, return when bond comes due, or matures it's no wonder, then, that rank and file investors are buying more individual bonds than ever. Most companies can borrow from banks, but view direct borrowing a bank as more restrictive and expensive than selling debt on the open market through bond issue. As a bond investor, you receive the same returns regardless of whether company makes record profits or losses. Yet it is issuing bonds so as to borrow yet more money. This is contrary to how equity investors receive returns stock can fall in price, and the company stop paying dividends, or make them smaller. When you buy a bond, are lending money to the company. The company promises to pay you interest and return your money on a date in the future. If the bonds are held to maturity, bondholders get back entire principal, so a way preserve capital while investing. Can firms buy the bonds issued by themselves in secondary market reasons why corporations invest securities do issue bonds? Mount holyoke college. Googleusercontent search. Companies, governments and corporate bonds. Companies issue bonds why companies. Investors who buy corporate bonds are lending money to the company issuing bond. You can you also hedge against a national recession by purchasing mutual funds containing either foreign securities or commodities such as gold oil provides corporations with way to raise capital without diluting the current shareholders' equity. You can choose among tens 6 nov 2017 the main reason why bonds are perceived as less risky is that returns of not tied to a company's performance or profitability. When you buy a bond, an issuer promises to pay interest on the money have invested, along with return of your investment at some future date. Percent of the cash held by publicly traded, nonfinancial companies was invested in those securities as january 1, 3 mar 2016 for banks with lower funding needs, buying back bonds is a means deleveraging. Why investors buy bonds with negative yields the economist corporations corporate why are banks buying back their own debt? Financial times. Why you should buy stocks and bonds like a business owner. When you buy one share of general electric, are a part owner the company. Stocks are also called equity for that reason you own a tiny piece of the companysince bonds debt instrument, they make regular interest payments to investors who purchase them. Asp "imx0m" url? Q webcache. All about stocks and bonds updated for 2017 i will teach you what is a corporate bond types, rates, how to buy. The bond market how it works, or doesn't third waycorporate bonds why you should buy on your own kiplinger. Investopedia investopedia why companies issue bonds. Reasons why some investor
Views: 4 E Market
What is PERFORMANCE BOND? What does PERFORMANCE BOND mean? PERFORMANCE BOND meaning
 
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What is PERFORMANCE BOND? What does PERFORMANCE BOND mean? PERFORMANCE BOND meaning - PERFORMANCE BOND definition - PERFORMANCE BOND explanation. Source: Wikipedia.org article, adapted under https://creativecommons.org/licenses/by-sa/3.0/ license. A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. The term is also used to denote a collateral deposit of "good faith money", intended to secure a futures contract, commonly known as margin. A job requiring a payment and performance bond will usually require a bid bond, to bid the job. When the job is awarded to the winning bid, a payment and performance bond will then be required as a security to the job completion. For example, a contractor may cause a performance bond to be issued in favor of a client for whom the contractor is constructing a building. If the contractor fails to construct the building according to the specifications laid out by the contract (most often due to the bankruptcy of the contractor), the client is guaranteed compensation for any monetary loss up to the amount of the performance bond. Performance bonds are commonly used in the construction and development of real property, where an owner or investor may require the developer to assure that contractors or project managers procure such bonds in order to guarantee that the value of the work will not be lost in the case of an unfortunate event (such as insolvency of the contractor). In other cases, a performance bond may be requested to be issued in other large contracts besides civil construction projects. Another example of this use is in commodity contracts where the seller is asked to provide a Bond to reassure the buyer that if the commodity being sold is not in fact delivered (for whatever reason) the buyer will at least receive compensation for his lost costs. Performance bonds are generally issued as part of a 'Performance and Payment Bond', where a Payment Bond guarantees that the contractor will pay the labour and material costs they are obliged to. Surety Bond Companies calculate the premium they charge for surety bonds based on three primary criteria: 1) Bond Type 2) Bond Amount 3) the Applicants Risk. Once the bond type, amount, and applicant risk are adequately assessed, a surety bond underwriter is able to assign an appropriate surety bond price. Surety Bond Companies have actuarial information on the lifetime claims history for each bond type. Over time, surety bond underwriters are able to determine that some surety bonds are more risky than others. For example, A California Motor Vehicle Dealer bond has significantly more claims than a straightforward notary bond. If a given surety bond type has paid out a high percentage of claims, then the premium amount paid by applicants will be higher. Surety Bond companies attempt to predict the risk that an applicant represents. Those who are perceived to be a higher risk will pay a higher surety bond premium. Since Surety bond companies are providing a financial guarantee on the future work performance of those who are bonded, they must have a clear picture of the individuals history. In the United States, under the Miller Act of 1932, all Construction Contracts issued by the Federal Government must be backed by Performance and Payment Bonds. States have enacted what is referred to as “Little Miller Act” statutes requiring Performance and Payment bonds on State Funded projects as well. There are over 25,000 types of Surety Bonds in the United States. Each bond has a designated bond amount. Surety Bond companies will determine bond rate based on risk and then charge a surety bond premium in the range 1-15% of the bond amount.
Views: 1755 The Audiopedia
Is There a Corporate Bond Bubble?
 
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Over the past decade, there’s been a boom in the amount of corporate bonds outstanding. With interest rates so low, corporations have issued more and more debt, taking advantage of record-low borrowing costs, and now there’s some concern that this could lead to some sort of corporate bond bubble that might soon burst. Collin Martin discusses these concerns and steps investors can take to combat them on Bond Market Today. Subscribe to our channel: https://www.youtube.com/charlesschwab Click here for more insights: http://www.schwab.com/insights/ (0718-80EP)
Views: 4757 Charles Schwab
Methods of Issue of Shares
 
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A basic understanding about the methods by which a company can issue its shares as per Companies Act , 2013 or the methods by which the shares can be obtained by a person !!
Views: 19097 unknown
Different Types of Bonds | Introduction to Corporate Finance | CPA Exam BEC | CMA Exam | Chp 7 p 4
 
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In this section, we briefly look at bonds issued by governments and also at bonds with unusual features. GOVERNMENT BONDS The biggest borrower in the world—by a wide margin—is everybody’s favorite family member, Uncle Sam. In early 2014, the total debt of the U.S. government was $17.5 trillion, or about $55,000 per citizen (and growing!). When the government wishes to borrow money for more than one year, it sells what are known as Treasury notes and bonds to the public (in fact, it does so every month). Currently, outstanding Treasury notes and bonds have original maturities ranging from 2 to 30 years. Most U.S. Treasury issues are just ordinary coupon bonds. There are two important things to keep in mind, however. First, U.S. Treasury issues, unlike essentially all other bonds, have no default risk because (we hope) the Treasury can always come up with the money to make the payments. Second, Treasury issues are exempt from state income taxes (though not federal income taxes). In other words, the coupons you receive on a Treasury note or bond are taxed only at the federal level. For information on municipal bonds including prices, check out emma.msrb.org. State and local governments also borrow money by selling notes and bonds. Such issues are called municipal notes and bonds, or just “munis.” Unlike Treasury issues, munis have varying degrees of default risk, and, in fact, they are rated much like corporate issues. Also, they are almost always callable. The most intriguing thing about munis is that their coupons are exempt from federal income taxes (though not necessarily state income taxes), which makes them very attractive to high-income, high–tax bracket investors. FLOATING-RATE BONDS The conventional bonds we have talked about in this chapter have fixed-dollar obligations because the coupon rates are set as fixed percentages of the par values. Similarly, the principal amounts are set equal to the par values. Under these circumstances, the coupon payments and principal are completely fixed. OTHER TYPES OF BONDS Many bonds have unusual or exotic features. So-called catastrophe, or cat, bonds provide an interesting example. In August 2013, Northshore Re Limited, a reinsurance company, issued $200 million in cat bonds (reinsurance companies sell insurance to insurance companies). These cat bonds covered hurricanes and earthquakes in the U.S. In the event of one of these triggering events, Northshore Re would receive cash flows to offset its loss. The largest single cat bond issue to date is a series of six bonds sold by Merna Reinsurance in 2007. The six bond issues were to cover various catastrophes the company faced due to its reinsurance of State Farm. The six bonds totaled about $1.2 billion in par value. During 2013, about $7.6 billion in cat bonds were issued, and there was about $20.6 billion par value in cat bonds outstanding at the end of the year. ncome bonds are similar to conventional bonds, except that coupon payments depend on company income. Specifically, coupons are paid to bondholders only if the firm’s income is sufficient. This would appear to be an attractive feature, but income bonds are not very common. A convertible bond can be swapped for a fixed number of shares of stock anytime before maturity at the holder’s option. Convertibles are relatively common, but the number has been decreasing in recent years. A put bond allows the holder to force the issuer to buy back the bond at a stated price. For example, International Paper Co. has bonds outstanding that allow the holder to force International Paper to buy the bonds back at 100 percent of face value if certain “risk” events happen. One such event is a change in credit rating from investment grade to lower than investment grade by Moody’s or S&P. The put feature is therefore just the reverse of the call provision. The reverse convertible is a relatively new type of structured note. One type generally offers a high coupon rate, but the redemption at maturity can be paid in cash at par value or paid in shares of stock. For example, one recent General Motors (GM) reverse convertible had a coupon rate of 16 percent, which is a very high coupon rate in today’s interest rate environment. However, at maturity, if GM’s stock declined sufficiently, bondholders would receive a fixed number of GM shares that were worth less than par value. So, while the income portion of the bond return would be high, the potential loss in par value could easily erode the extra return. Perhaps the most unusual bond (and certainly the most ghoulish) is the “death bond.” Companies such as Stone Street Financial purchase life insurance policies from individuals who are expected to die within the next 10 years.
Intro to Financial Accounting: Bonds Issued at Discount & Premium; Stockholder's Equity
 
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Introduction to Financial Accounting Professor Alexander Sannella Lecture 21 00:12 Review on Recording Bonds issued at discounts (verbal) 06:03 Recording Bonds Issued at a discount 06:58 Example 08:05 Recording Discounted bonds 17:52 Straight line - Amortization Table (discount) 19:36 Example 23:20 Recording Bonds Issued at a Premium 24:15 Example (verbal) 31:22 Journal Entry 34:25 Amortization Table (premium) example 36:05 Journal Entry Questions and Answers 39:46 Question 1 46:10 Question 2 52:07 Question 3 Learning Objective 4 56:06 Retirement of Bonds at Maturity + Journal Entry 56:56 Retirement before Maturity 59:36 Reasons for retiring bonds early 1:02:05 Example of retirement before maturity + Journal Entry Learning Objective 5 1:06:24 Balance Sheet Example Learning Objective 6 1:06:45 Debt Equity Ratio Chapter 13 Learning Objective 1 1:10:57 Stockholder's Equity (Definitions of Stock Terms) When the bond interest rate is greater than the market rate, the bonds are issued at a premium. The difference between the bonds payable and the cash received is recorded as a bond premium (an adjunct account). The premium is amoritzed over the life of the bond, reducing interest expense to the lower market rate. When the bond interest rate is less than the market rate, the bonds are issued at a discount. The difference between the bonds payable and the cash received is recorded as a bond discount (contra-liability). The discount is amortized over the life of the bond, increasing interest expense to the higher market rate. Bonds can be retired before maturity by an open market repurchase or a "call." Bonds can be called at par or a price above par (which is par plus a call premium). A company will retire bonds before maturity for a variety of reasons: (1) To refinance in order to take advantage of lower market interest rates, (2) the company has excess cash and would like to avoid future interest changes and create greater financial flexibility, (3) to improve the company's debt to equity ratio, and (4) to comply with other debt agreements. When retiring before maturity, the full bonds payable will typically be retired. The remaining discount or premium will be removed. The cash paid will not equal the face value. The difference will be recorded as either a gain on retirement of bonds (cash paid to retire is less than the carrying value) or a loss on retirement of bonds (cash paid to retire is more than the carrying value). A corporation is a separate entity created by law that is separate and distinct from its owners and its continued existence is dependent upon the corporate statutes of the state in which it is incorporated. Classification by ownership distinguishes between publicly held and privately held corporations. The primary objectives for accounting for stock holder's equity are to: (1) separately disclose each source of equity (due to widespread ownership and the owner-manager separation), and (2) to disclose all rights or any restrictions of rights of each class of equity security. The stockholders' equity section of the balance sheet includes several parenthetical disclosures: the terms are: authorized shares, issued shares, and outstanding shares. Authorized shares is the maximum number of shares of stock that a company can issue. It is specified in the company's charter. Issued shares are the total number of a company's shares that have been sold or distributed to shareholders over time. Outstanding shares are the number of shares of a corporation's stock that are in the hands of investors. Outstanding shares are issued shares less treasury shares. Treasury shares are the number of issued shares that have been previously issued and later reacquired by the corporation. To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
What are Securities? [ The ultimate Securities Definition ]
 
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Finances can get messy. That’s why we have napkins for you. Napkin Finance gives you simple, visual, stress-saving financial tips and news. http://napkinfinance.com Securities Napkin: https://napkinfinance.com/napkin/finance-securities/ Transcript: Securities Securities are investment that allow you to own things without physically holding onto them Examples: stocks and bonds Stocks, bonds, mutual funds, and certificate of deposits marketable securities (easily bought and sold in a public market) investments or debts Government bonds and private company shares non-marketable securities (difficult to buy and sell) investments and debts Marketable = things that can be sold Non-marketable = things that can’t easily be sold “Securities” in the name may be a bit misleading Securities are not secured with collateral (assets that a borrower offers a lender to secure a loan) Why invest in securities? To build a healthy portfolio it is important to have a mix of both types of securities Two categories of marketable securities Equity provides partial ownership in an investment Debt securities represent an obligation for repayment
Views: 19171 Napkin Finance
Intro to the Bond Market
 
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Most borrowers borrow through banks. But established and reputable institutions can also borrow from a different intermediary: the bond market. That’s the topic of this video. We’ll discuss what a bond is, what it does, how it’s rated, and what those ratings ultimately mean. First, though: what’s a bond? It’s essentially an IOU. A bond details who owes what, and when debt repayment will be made. Unlike stocks, bond ownership doesn’t mean owning part of a firm. It simply means being owed a specific sum, which will be paid back at a promised time. Some bonds also entitle holders to “coupon payments,” which are regular installments paid out on a schedule. Now—what does a bond do? Like stocks, bonds help raise money. Companies and governments issue bonds to finance new ventures. The ROI from these ventures, can then be used to repay bond holders. Speaking of repayments, borrowing through the bond market may mean better terms than borrowing from banks. This is especially the case for highly-rated bonds. But what determines a bond’s rating? Bond ratings are issued by agencies like Standard and Poor’s. A rating reflects the default risk of the institution issuing a bond. “Default risk” is the risk that a bond issuer may be unable to make payments when they come due. The higher the issuer’s default risk, the lower the rating of a bond. A lower rating means lenders will demand higher interest before providing money. For lenders, higher ratings mean a safer investment. And for borrowers (the bond issuers), a higher rating means paying a lower interest on debt. That said, there are other nuances to the bond market—things like the “crowding out” effect, as well as the effect of collateral on a bond’s interest rate. These are things we’ll leave you to discover in the video. Happy learning! Subscribe for new videos every Tuesday! http://bit.ly/1Rib5V8 Macroeconomics Course: http://bit.ly/1R1PL5x Ask a question about the video: http://bit.ly/29Q2f7d Next video: http://bit.ly/29WhXgC Office Hours video: http://bit.ly/29R04Ba Help us caption & translate this video! http://amara.org/v/QZ06/
What it means to buy a company's stock | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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What it means to buy a company's stock. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/stocks-intro-tutorial/v/bonds-vs-stocks?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: Many people own stocks, but, unfortunately, most of them don't really understand what they own. This tutorial will keep you from being one of those people (not keep you from owning stock, but keep you from being ignorant about your investments). About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 547942 Khan Academy
What exactly are stocks and bonds?
 
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Let's get back to the basics. Stocks and bonds are both instruments used by companies to raise capital. But what exactly does that mean and how are stocks and bonds different? Nathan Ritchison, CFP® walks you through the differences between stocks and bonds and the risk factors of both. Transcription: "Sometimes in my client meetings I get questions about or looks at least, that indicate that maybe people don't understand what a stock and a bond are. So I thought today what we do is go over what a stock and a bond are just from a very basic perspective. Both instruments are used by companies to raise capital. So a stock is usually issued to transfer ownership over from a company into an individual's name. A bond, on the other hand, is like an IOU. A debt instrument of a company. So these two instruments are really used by companies to raise capital. So a stock is really a share of a company, an ownership of a company, that then gets traded on an exchange. So depending on what the value is of a particular company and if the value increases, which we all hope it does, then the stock will become more valuable. Stocks also carry with them dividends, which are excess earnings paid out to individuals who own the shares - shareholders - in the form of excess earnings and income. Bonds on the other hand, are IOU's. Like I said, they're debt instruments. So these are issued, usually with a principal value, and then interest along the way. But at the end of the term of a bond, you're going to get your principal back. So typically, bonds have less risks than stocks because you get this guaranteed principal repayment at the end of the bond. Now if you have more questions about this please log on to purefinancial.com We have great resources there that can point you in the right direction." If you would like to schedule a free assessment with one of our CFP® professionals, click here: https://purefinancial.com/lp/free-assessment/ Make sure to subscribe to our channel for more helpful tips and stay tuned for the next episode of “Your Money, Your Wealth.” https://www.youtube.com/subscription_center?add_user=PureFinancialCFP Channels & show times: http://yourmoneyyourwealth.com https://purefinancial.com IMPORTANT DISCLOSURES: • Investment Advisory and Financial Planning Services are offered through Pure Financial Advisors, Inc. A Registered Investment Advisor. • Pure Financial Advisors Inc. does not offer tax or legal advice. Consult with their tax advisor or attorney regarding specific situations. • Opinions expressed are subject to change without notice and are not intended as investment advice or to predict future performance. • Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. • All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. • Intended for educational purposes only and are not intended as individualized advice or a guarantee that you will achieve a desired result. Before implementing any strategies discussed you should consult your tax and financial advisors.
Wondering what are Masala Bonds? Here's Everything You Need To Need To Know
 
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In a bid to raise cheap funds from abroad, Masala Bonds have become the newest hot instrument for Indian companies. Masala Bonds are rupee-dominated bonds issued outside India. Watch video to know more... Liked the video? Subscribe to Insight 18 and never miss our videos http://bit.ly/2qfUWJZ Facebook: https://www.facebook.com/insight18/ Twitter: https://twitter.com/Insight_18 Google Plus: http://bit.ly/2sldn0S
Views: 3712 Insight 18
WHO Issues Bonds And Why?
 
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Nervous investors often flock to default risk issue bonds, they may be unable obtain an investment grade bond credit rating. What are high yield corporate bonds? Sec. Who issues bonds and why? Cameron hume. The positive economist trax who issues bonds? . It stands to reason then that the bodies issue them are borrowing money. Sthe issuance decision hedging risk management, cost incentives to issue in foreign currency, and bond market characteristics that motivate offshore such 13 apr 2016 corporate bonds are a financial tool corporation uses raise funding. Banks' much vaunted issuance of their own bonds still costs them so dearly that government backed debt for a bond issue to be success, the issuer needs ensure characteristics itself meet both its requirements and targeted. Why issue bonds offshore? Bank for international settlements. The primary market refers to those issuers that borrow most and have the greatest number of bonds in issue are governments related institutions, such as world bank, european investment bank us agencies fannie mae freddie mac finance, a bond is an instrument indebtedness issuer holders. Private placement involves the 13 aug 2016 longest dated bond issued by uk will be paid back on 22 july 2068. You can issue corporate bonds or sell shares of stock without taking a city may to raise money build bridge, while the federal government issues finance its spiraling debts. Asp url? Q webcache. Bond (finance) wikipediawhy do corporations issue bonds? Mount holyoke college. Investopedia investopedia why companies issue bonds. The interest rate companies pay bond investors is often less than the they would be required to obtain a bank loan 13 jun 2012 now that you know why want buy bonds, and what influences return can bring you, not have look at other number of different kinds entity issue bonds. Chapter 1 requirements to issue bonds world bank treasury. The uk 24 jun 2015 the different types of institutions that issue these bonds are states, towns, cities, counties, school districts, hospitals, transportation authorities, corporations have two options when it comes to raising money without taking out a loan. Why corporations issue bonds rather than stocks what is a bond? Personal finance wsj. Issue bonds why companies issue. Bonds should not be issued by companies who already carry large amounts of debt, as a bond issuance simply increases debt and makes an unstable company more so. Googleusercontent search. The most bonds are issued by public authorities, credit institutions, companies and supranational institutions in the primary markets. These include companies, public authorities and supra national institutions. Like people, companies can borrow from banks, but issuing bonds is often a more attractive proposition. Govbanks issue bonds, but government backing is key bond issuance the questions. Bonds in america investing bonds. How to issue corporate bonds (with pictures) wikihowworld news how do municipal work? Learn t
Views: 58 Pan Pan 1
Consolidated Bank Issue Bond Listing
 
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More Kenyan companies are expected to raise funds through the Nairobi Securities Exchange as higher interest rates force companies to seek an alternative source of funds. Of the various options available, the equities market has been the busiest with many companies opting for rights issues. Market analysts are however asking companies to take up bonds as an alternative source of funds due to the limitations of equities. This year only Consolidated Bank has issued a bond on the market despite the fact that companies have raised over 54 billion shillings through bonds over the last 5 years. Denis Otieno reports.
Views: 114 Kenya CitizenTV
What Is A Corporate Bond?
 
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The money raised may finra trace corporate bonds treasury bills, notes and the curve today as benchmark 10 year bond is relatively unchanged from previous nov 13, 2013. They differ based on duration, risk, and type of interest payment. A corporate bond is a debt security issued by corporation and sold to investors. The backing for the bond is usually payment ability of company, which typically money to be earned from future operations. The risk and rewards of corporate bonds best to build investment ladder bankrate youtube. In terms of corporate bonds etfs invest in debt issued by corporations with investment grade credit ratings. Look to bond grades provide a guide as well jun 28, 2016 corporate is form of debt security essentially an iou issued by public and private companies investors. What determines their corporate bonds are debt obligations issued by corporations to fund capital improvements, expansions, refinancing, or acquisitions. Corporate bond wikipedia corporate investopedia terms c corporatebond. Corporate bonds often pay higher rates than government or municipal bonds, because find the top rated corporate bond mutual funds. Bonds included in these funds can feature varying maturities companies issue corporate bonds (or corporates) to raise money for capital expenditures, operations and acquisitions. Investors who buy corporate bonds are lending money to the company issuing bond. Corporate bonds one way to preserve your capital and look forward. In some cases, the company's physical assets may be used as collateral for bonds a bond is debt obligation, like an iou. Low risk investment grade stalwarts were up 6. Corporates are issued by all types of dec 18, 2015 read about the pros and cons corporate bonds. Googleusercontent search. About corporate bonds investing in. Corporate bond wikipediawhat are corporate bonds? Sec. Interest is subject to corporate bonds are debt instruments created by companies for the purpose of raising capital. Nov 10, 2013 corporate bonds guarantee income, reduce risk, increase returns and are easy to buy over the phone. Unlike stocks, bonds do not give you an ownership interest in the issuing corporation overview. Compare reviews and ratings on financial mutual funds from morningstar, s&p, others to help find the best we offer risks rewards of taking corporate bonds. In return, the company makes a legal commitment to pay interest on principal and, in most cases, return when bond comes due, or matures corporate is issued by corporation order raise financing for variety of reasons such as ongoing operations, m&a, expand dec 17, 2016 bonds are type loan. Visit asic's moneysmart website for more information and a check list to help you decide if jan 14, 2017 corporate bonds have been terrific investments much of the past year. Corporate bonds are debts issued by industrial, financial and service companies to finance capital investment operating cash flow. Asp url? Q webcache. So why are so few investors holdi
Views: 11 Question Tray
Credit risk in bonds
 
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Credit risk in bonds I've tried to emphasize interest rate risk when you invest in bonds because many people don't understand this risk even though it's probably the biggest risk facing today's bond investor. But almost everyone understands credit risk. Credit risk is the risk that the issuing company or government can't meet the promised interest or principal payments. US Treasuries face least credit risk In this case, US Treasury bonds and mortgage securities called Ginnie Maes offer the highest credit ratings. These securities are backed by the "full faith and credit" of the US government. Government agency securities After US Treasuries and Ginnie Maes come debt issued by quasi-governmental agencies like the Federal Home Loan Mortgage Corporation also known as Freddie Mac. Although debt issued by these corporations does not carry the explicit backing of the US government, most bond traders believe the government will back up the companies if their bankruptcy is threatened. Blue chip corporations Next comes the debt of large, blue chip corporations like General Electric. This debt is normally called investment grade debt. Debt issued by large corporations is normally rated by independent companies like Moody's, and Standard & Poors. These companies do extensive research into the issuing company's ability to repay their bonds. Hierarchy of claims Before we jump further down into junk bonds, we should spend a little time talking about the hierarchy of claims on a company's assets and see what happens if a company files or is forced into bankruptcy. According to the US Constitution, bankruptcy proceedings are handled by federal law. US bankruptcy laws were rewritten in 1978 to change the traditional pecking order of those who can make claims against a bankrupt company. Lawyers and the IRS are highest Highest on the pecking order is the bankruptcy lawyers. Lawyers write the laws, so it shouldn't be too surprising that they want to get paid for their efforts as they try to dole out the company's assets. Next comes the IRS, then the firm's employees and their pension funds. After them come the company's secured creditors. These creditors have loaned the company money, but the loan is secured by a mortgage on a piece of real property like a building or heavy equipment. Most blue chip debt is unsecured Although secured debt is common for smaller companies, the majority of blue chip corporate debt is unsecured debentures. Here the lender only has the promise that the firm will honor its debt. This is similar to unsecured credit card debt that most consumers carry. However, there are several levels of unsecured debt. So-called senior debt holders are paid off before junior or subordinated debt holders. Unsecured creditors also include the suppliers who provided the company with merchandise. After the junior debt holders come the preferred stockholders. Finally, if there's any money left, the common stockholders receive compensation for their ownership in the company. Chapter 11 and 7 bankruptcy There are two forms of corporate bankruptcy, named for sections in the federal law which govern their policies. One is Chapter 11, and this type appears in the news most often. In this case, the company continues operation, but it receives a temporary reprieve from its creditors while it works out a debt repayment plan. The second is Chapter 7. In this more extreme case, the company is liquidated and assets are sold off to satisfy creditors. A company can be forced into bankruptcy by its creditors if the company fails to meet its obligations. The company also voluntarily can choose to file for bankruptcy. Once in bankruptcy, a federal court plays a major role in the handling of claims. Typical bankruptcy reorganization Although it's difficult to generalize about bankruptcy proceedings, if a company files for bankruptcy, and then later re-emerges as an operating company, the old creditors and shareholders have their claims shifted down one level in the claims hierarchy. For example, the old senior debt holders become junior creditors, the old junior debt holders become stockholders and the old stockholders lose everything or perhaps get some equity warrants. Ratio analysis for credit worthiness To avoid the unpleasantness of bankruptcy, bond investors and independent rating agencies analyze a company's financial condition. Typically, investors look at various ratios to see if the firm is a good risk. One of the most common ratios is the firm's current ratio. Current ratio Times interest earned ratio Debt to equity ratio Copyright 1997 by David Luhman
Views: 902 MoneyHop.com
What Are Contract Surety Bonds?
 
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In the world of contract surety there are two basic categories – Construction Surety Bonds and Commercial Contract Surety Bonds. Video Transcript: We previously discussed that while Contract Surety Bonds are issued by insurance companies, surety is NOT like the insurance you get for your home, car or business… In the world of contract surety there are two basic categories – Construction and Commercial. In construction contract surety there are a number of bond types that may be needed. Bid bonds, performance bonds and payment bonds are the most prevalent; but, you may sometimes see: warranty bonds, maintenance bonds and subdivision bonds. When an owner, usually a public entity… but not always, decides to put a construction project out to bid, they will provide the outline, plans and specifications for that job to either a specific list of contractors or the general public. The owner (the Obligee) will set a date and time for the bids to be turned in. And here is a tricky fact…. Often a General Contractor (GC) who has been awarded a large contract will put parts of that same contract out to bid to subcontractors who specialize in certain trades. Since the GC is responsible for the entire job, even the parts they don’t perform themselves, the GC will want assurance that their subcontractors will perform the work to the contract specification so the GC will require their subs to get bonded as well. In this instance the GC becomes the Obligee to its subs and the sub-contractors are the principals. Most Obligees require the posting of a “Bid Security” in the form of a cashier’s check or a bid bond. The amount of the bid security is usually 10%, but can range from 5% to 25% or more. The bid bond guarantees that the lowest qualified bidder will sign the contract and provide the required surety bonds. For a Contractor to qualify for these bonds, they must demonstrate to the Surety their experience, expertise, staffing, cash flow, reserves and character to manage, properly perform and accomplish the work. The surety provides the bonds that allow you to get the job; but they do so with the understanding, as discussed in our “What is Surety” video, that their guarantee will never have to be acted upon. The number one rule in surety is that if the surety thinks that a requested contract bond (visual: Bid, Performance, Payment, etc.) might have a claim, then the surety will decline the request…. Period. The Extension of Surety Credit is Based Upon Zero Loss Potential. Sometimes problems occur and jobs run into trouble and claims happen. Sureties understand this and expect the contractor to step up and take care of the problem, as necessary. How a contractor manages the problems says a lot about their character and once a problem is managed and resolved, the experience can even help the contractor going forward since they have shown the ability to do what is necessary to solve the problem. Often a positive result to a job problem provides the surety underwriter with a better comfort level in regards to the character of the contractor, which can help when trying to grow their surety support. Speaking of Surety Underwriters, these are the individuals who analyze the contractors’ information and the contract to determine if the surety can support the contractor and their request. In the past, all contractors were required to provide significant financial information in order to qualify for contract surety support. Over the last decade this has changed… A bit. Today, there are many surety programs that have adjusted their entry level requirements to allow an easier path for contractors to get started in the world of surety bonded contracts. There are a number of “Application Only” programs that only need a completed application and possibly some limited financial information to provide surety bonds for single jobs up to around $500,000 and also support a total multi-job surety bonded program (aggregate) up to around $1 million or more. This is the industry’s effort to reach out and help contractors get some experience in public sector jobs or jobs that require surety bonds. Once a contractor wishes to graduate to bigger works, they will need to bring substantially more financial information to support the larger surety bond program. What is needed????? That we will save for another time. I hope our little video has given you a good insight into contract surety bonding and we look forward to sharing more surety specific information in the future….
Views: 5802 South Coast Surety
Company Accounts - Issue of Shares[ #1 ]Introduction to Corporate accounts
 
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▓▓▓▓░░░░───CONTRIBUTION ───░░░▓▓▓▓ If you like this video and wish to support this kauserwise channel, please contribute via, * Paytm a/c : 7401428918 * Paypal a/c : www.paypal.me/kauserwisetutorial [Every contribution is helpful] Thanks & All the Best!!! ─────────────────────────── Introduction to Company accounts or Introduction to corporate accounts with an example problem. In this video we discussed about What is Authorised capital, Issued capital, unissued capital, Called up capital, uncalled up capital, Paid up capital, Subscribed capital, Calls in arrears, Reserve capital. Terms of Issues: Issue of shares at par, Premium and Discount To watch more tutorials pls visit: www.youtube.com/c/kauserwise * Financial Accounts * Corporate accounts * Cost and Management accounts * Operations Research Playlists: For Financial accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnojfVAucCUHGmcAay_1ov46 For Cost and Management accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnpgUjlVR-znIRMFVF0A_aaA For Corporate accounting - https://www.youtube.com/playlist?list=PLabr9RWfBcnorJc6lonRWP4b39sZgUEhx For Operations Research - https://www.youtube.com/playlist?list=PLabr9RWfBcnoLyXr4Y7MzmHSu3bDjLvhu
Views: 221355 Kauser Wise
our company plans to issue bonds later in the upcoming year. But with
 
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our company plans to issue bonds later in the upcoming year. But with the economic uncertainty and varied interest rates, it is not clear how much money the company will receive when the bonds are issued The company is committed to issuing 2,000 bonds, each of which will have a face value of ,000, a stated interest rate of 8 percent paid annually, and a period to maturity of10 years. (Future Value of , Present Value of , Future Value Annuity of , Present Value Annuity of ) (Use appropriate factor(s) from the tables provided.) Required: 1. Compute the bond issue proceeds assuming a market interest rate of 8 percent. rwhen computing proceeds, round the present value of the face amount and of the annual interest payment to the nearest thousand dollars.) Also, express the bond issue price as a percentage by comparing the total proceeds to the total face value. Table or Calculator Function: Face Value of Bond Issuance from Future Value Market Interest Rate Present value of proceeds from bond issue Bond issue Price as a Percentage of Face Value
Views: 0 fbxfgn fgnxfgn
What Is A Stock Market - A Beginners Guide
 
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http://youtu.be/tPVg8YMa5Gw Brought to you by http://www.HowToInvestInShares.co.uk - the subject of this video is: What Is A Stock Market? 0:26 What Is A Market? 1:05 What Are Stocks? 1:16 Bonds 2:52 Shares 3:53 Summary 4:53 More information and FREE Guide at http://www.HowToInvestInShares.co.uk Firstly, a market is somewhere where you can go to buy something or to sell something. So a market is somewhere where buyers and sellers congregate and they make their trades by buying, selling, swapping or exchanging something. A stock market then, is a place where you go to trade stocks. So it's where you buy and sell stocks. So what are stocks? Stocks are one of two things. They are either bonds or shares. Bonds are IOU's. So if I wanted to buy some bonds, I would go to a stock market and buy some bonds from either a bank in the form of a savings bond; or a Government in the form of a Government bond or GILT as they are sometimes called; or I would buy corporate bonds from a company. Say I want to buy a single bond for $1,000 or £1,000. Then I am investing money in a bank, a company or a Government and they give me a modern form of IOU. In return for me lending them money, they pay me interest on that bond and normally there is a future date for the bond when the IOU will be reversed and I get my money back. That's not always the case, but more often than not it is. In the meantime, as the bondholder, the second advantage of the market is that I can trade my bond with other people. I could sell my bond to another investor, or I could have bought my bond from another investor who had previously got it from a bank, a Government or a company at the time it was initially issued on the primary market. The other form of stocks are shares and these are small pieces of companies. So if I've got a company and I want to raise money on a stock market, I would go to the stock market and I would float either the entire company in the form of an IPO (Intial Public Offering) or I would issue new stock, new shares, to the market. So, in this case, I am using the primary aspect of the market to raise new funds. Of course, having issued those shares to new investors, those share investors need a method of trading those shares, selling them on to other investors as the share prices change. That's the secondary aspect of the stock market that allows investors to buy and sell shares on the secondary market as opposed to on the primary market. So in summary then, a stock market is a place where you can go to trade stocks i.e. bonds and shares and a stock market has a primary function and a secondary function. The primary function is where new shares and new bonds are issued by the primary issuer, that is the company, the Government or the bank and then it has a secondary market where those investors who bought the bonds and shares in the initial primary market can sell them on. Of course, as an investor, you have a choice. You can buy shares or bonds at the initial time of issue in the primary market and/or you can buy those shares in the secondary market. If you've enjoyed this video, please click the like button below and share it with your friends. You can also find lots more information and a FREE gift available at my website: http://www.HowToInvestInShares.co.uk
Views: 57928 SharesCoach
Other fixed income investments
 
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Other fixed income investments Convertible bonds Convertible bonds are another type of fixed income investment, but they're more of a cross between a bond and a stock. Convertible bonds are issued by smaller, growing companies. The company needs money to grow, but for some reason doesn't want to issue stock at what could be a currently low price. So the company issues convertible bonds. These bonds pay a lower interest rate than the going rate for corporate bonds of similar quality. But convertible bonds can be exchanged for new shares of the company's stock, usually at a favorable price and at the convertible bondholder's discretion. Initially, because the company's stock price is below the conversion price, bondholders don't convert their bonds into shares. But, over time, if the company's stock increases, the bonds become more valuable. So convertible bonds provide downside protection because they pay reasonably high current income, but they also have upside potential. If you have a large portfolio, you might want to place 15 percent of your bond money into a convertible bond mutual fund. Preferred stock Preferred stock, however, is one hybrid security that probably doesn't belong in an individual's portfolio. Preferred stock is really a fixed income investment and not an equity investment. Most types of preferred stock offer high, fixed dividend payments, with little chance to benefit if the company prospers. In the hierarchy of claims on a corporation's assets, preferred stock is ranked above common stock but below bonds. Preferred stock gets the name "preferred" because of this ranking above common stock in bankruptcy claims. Preferred stock is attractive to corporations The fixed payments to preferred stockholders are classified as dividends, and not as interest payments, so the payments are not tax deductible by the issuing company. Since companies that receive dividend payments can exclude most of the dividend payments from their taxable income, preferred stocks are attractive to corporations. The tax exclusion of dividends is open only to corporations, and is meant to reduce the effects of double or even triple taxation of dividends. The exclusion of preferred stock dividends means that preferred stock is more attractive to corporations than to individuals. So unless you're a corporation, you probably shouldn't invest in preferred stock. Miscellaneous fixed income plays Although I'd recommend that you stick with bank CDs, bond mutual funds, or guaranteed investment contracts when you do your fixed income investing, there are other fixed income investments out there. These include tax liens, adjustable rate mortgage funds or buying mortgages on your own. I'd recommend you stay away from these for the most part. They're riskier than you might think. Although there are plenty of other esoteric fixed income investments out there, corporate and government bonds represent by far the largest part of the fixed income market. Copyright 1997 by David Luhman
Views: 171 MoneyHop.com
Stock dilution | Stocks and bonds | Finance & Capital Markets | Khan Academy
 
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Why the value per share does not really get diluted when more shares are issued in a secondary offering. Created by Sal Khan. Watch the next lesson: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/mergers-acquisitions/v/acquisitions-with-shares?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Missed the previous lesson? Watch here: https://www.khanacademy.org/economics-finance-domain/core-finance/stock-and-bonds/venture-capital-and-capital-markets/v/chapter-11-bankruptcy-restructuring?utm_source=YT&utm_medium=Desc&utm_campaign=financeandcapitalmarkets Finance and capital markets on Khan Academy: When companies issue new shares, many people consider this a share "dilution"--implying that the value of each share has been "watered down" a bit. This tutorial walks through the mechanics and why--assuming management isn't doing something stupid--the shares might not be diluted at all. About Khan Academy: Khan Academy offers practice exercises, instructional videos, and a personalized learning dashboard that empower learners to study at their own pace in and outside of the classroom. We tackle math, science, computer programming, history, art history, economics, and more. Our math missions guide learners from kindergarten to calculus using state-of-the-art, adaptive technology that identifies strengths and learning gaps. We've also partnered with institutions like NASA, The Museum of Modern Art, The California Academy of Sciences, and MIT to offer specialized content. For free. For everyone. Forever. #YouCanLearnAnything Subscribe to Khan Academy’s Finance and Capital Markets channel: https://www.youtube.com/channel/UCQ1Rt02HirUvBK2D2-ZO_2g?sub_confirmation=1 Subscribe to Khan Academy: https://www.youtube.com/subscription_center?add_user=khanacademy
Views: 96107 Khan Academy
What Is A Gilt Bonds?
 
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An explanation of the different types gilt appears securities issued by uk government are also called 'gilts' or 'gilt edged securities', while companies known as corporate bonds find out more about bonds, gilts and fixed interest dealing available through hargreaves lansdown using our dedicated knowledge centre 30 jun 2010 this brochure is intended to help those who have an in investing would like know essential features sterling denominated hm treasury listed on london stock exchange. Gilt edged bond investopediagilt securities wikipedia. Why gilt funds are not a great investment idea right now. Gilts investopedia terms g gilts. Uk gilts & government investment bonds barclays stockbrokers. Some claim that the term 'gilt' arose because original bond 4 jun 2015 they are also known as gilts or gilt edged securities government security means a created and issued by for 6 dec 2011 yields have become more attractive, while spreads between corporate much lower than were five years ago market is comprised of two different types conventional index linked. Why government securities are called gilt edged securities? Indian bonds what gilts? Investors chronicle. Googleusercontent search. The term originated in britain and referred to debt securities that had a gilt (or when the 'gilt' is used, it normally refers bonds issued by british government. This type of security originally boasted gilded edges, thus the name. Asp url? Q webcache. Gilts what are they? Telegraph. The term is of british origin, and then referred to the debt securities issued by bank 21 aug 2013 definition gilt funds are mutual that invest only in government. Government at a fixed interest rate and maturity. Gilt edged market makers (gemms) gilts are uk government bonds, the benchmarks for sterling fixed income markets, ease of reference tables divided into (conventional) and 3 may 2013 before we move to returns, a quick recap on what gilt funds. Fixed interest securities gilts and corporate bonds money advice & uk government a guide to 'gilts' london stock exchangeuk fixed income investor bond prices yields should you invest in gilt funds? Marketplace fundsindia. In the case of a firm, gilt edged definition 'gilt bond' bond issued by u. Gilt edged bond investopedia. About gilts uk debt management office. Ktreasury securities, and the name originates from original certificates, issued by british government, which had gilded edges high grade bonds that are a government or firm. Gilts are bonds that issued by the british government, and they generally considered low risk investments. Gilts and corporate bonds explained which? . Gilt edged bond' may also be used to refer a quality fixed income investment issue from blue chip company or highly credit worthy government agency gilt securities are bonds issued by some national governments. What is a gilt? Conventional & index linked share centre. They are preferred by risk averse and conservative investors 16 may 2016 gilt funds witnessed heav
Views: 111 Burning Question
Bonds
 
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A bond is issued by a government or company as a way of borrowing money. Investors buy the bonds, and receive an interest payment on the fixed dates, at the stated interest rate, or ‘coupon.’ The bond has a known maturity date, at which the investors are entitled to be repaid the money lent via the bond. It is possible that at maturity date the company or government cannot repay the bond or is unable to pay the coupons: .this is the main risk associated with owning a bond. Bonds can usually be bought and sold like shares, but if you sell or buy a bond before maturity it may have a different value than the initial amount loaned, which can give rise to a capital gain or loss.
Views: 51 George Lucas
How to Double Your Money – Tax Free Bonds [8/9]
 
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Tax free bonds are issued by government enterprises which offer fixed payment of interest in return for borrowed money for a specified period. You don’t have to pay any tax on the interest earned from these bonds. They typically have long term maturity of 10, 15 or 20 years. Tax free bonds can be transacted in stock exchanges. These bonds give return of around 11%-12% if bought at the time of it’s issue. While, it gives a return of 9-9.5% if bought at stock exchange. Tax-free bonds are suitable for investors looking for a steady source of income annually and can afford to lock-in their capital for the long term. Tax free bonds are a risk free investment option to double money. Watch our video to know more about it.
Views: 1594 B Wealthy
Top 5 Things You Need to Know About Surety Bonds
 
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For more info and 1-step ballpark estimate go to http://www.jwsuretybonds.com/info/videos/general/surety-bonds-top-five.htm "Running your own business is complicated, and there’s a lot to know about surety bonds. Here are the top 5 things you should know: Tip #1: Price can vary drastically. The cost of a bond changes depending on what the bond guarantees, the applicant's credit standing, the bond size, and the agency with which it’s placed. All of these factors come into consideration, when the surety company calculates the risk posed by issuing an individual surety bond. Tip #2: Surety bonds aren’t insurance for your business; they are insurance for whoever requires the bond and/or your clients. To you, they’re a form of credit. If there’s a claim, the bonding company will pay it, but they’ll look to your business for reimbursement. This is why you need to avoid claims at all costs. A lot of the confusion comes from mixing up surety bonds with a very similar kind of bond, called a fidelity bond. The latter actually does act as insurance to protect a company and its customers, but a surety bond doesn't. Tip #3: Provide accurate information. The accuracy of information that you provide to a bonding agency is of the utmost importance. If any of the information the bonding company receives is wrong, your business could receive an inaccurate quote. Even worse, the obligee could reject the bond, which will cost you additional time and money. Tip #4: Your credit and financial standing can play a big role in the bonding process. Personal credit is always analyzed, since it’s an indicator of whether a company is likely to trigger a claim. For larger bonds, business financials may also be evaluated to determine a business’s financial strength. Poor credit or weak business financials can raise bond rates or even prevent you from being bonded. Since JW Surety Bonds is the top US bond producer, we can approve bonds even when others can’t. Tip #5: Who your professional business partners are will have an effect on your bond cost. This will count towards whether you can have access to the best sureties, low bond rates, and fast turnaround times. For contract bonds, it’s best to work with CPAs and lawyers with experience in the construction industry. For more information, watch our video on "How to Choose the Right Bond Agency." http://youtu.be/0EWAYljHlzM
Views: 2864 JW Surety Bonds
What Is A Corporate Bond?
 
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Corporate bonds in india finance and banking mondaq. Corporate bond wikipedia. Interest is subject to 1 jun 2016 if the need for a deep corporate bond market was desirable, india's aspiration and plans take up large infrastructure projects across looking an investment vehicle that provides predictable interest payments manageable level of risk? Find out bonds are you 13 nov 2013. After government bonds, the corporate bond market is largest section of global universe. A new route to investing direct in 18 dec 2015 read about the pros and cons of corporate bonds. Corporate bonds are debt instruments created by companies for the purpose of raising capital. The backing for the bond is usually payment ability of company, which typically money to be earned from future operations. In some cases, the company's physical assets may be used as collateral for bonds a corporate bond is issued by corporation in order to raise financing variety of reasons such ongoing operations, m&a, or expand business. Corporate bonds a guide to investing corporate fidelity investments. A corporate bond is a debt security issued by corporation and sold to investors. What is a corporate bond? . Corporate bond definition & example corporate bonds definition, type and size of market the balance. With a vast array of maturities, yields and credit quality 2 corporate bonds etfs invest in debt issued by corporations with investment grade ratings. Know your debt funds what is corporate bond fund? Livemint. Corporate bond investopedia terms c corporatebond. Companies issue corporate bonds to raise money for a variety of purposes, such the sec's office investor education and advocacy is issuing this bulletin offer basic information about. Visit asic's moneysmart website for more information and a check list to help you decide if corporate bonds are debt obligations issued by corporations fund capital improvements, expansions, refinancing, or acquisitions. Corporate bond market time to look beyond bank borrowings for what is a corporate types, rates, and how buyunderstanding bonds top 73 etfs. Corporate bond wikipediacorporate wikipedia. What determines their the interest payments you receive from corporate bonds are taxable. About corporate bonds nse national stock exchange of india ltd what are bonds? Sec. Corporate bond fund debt funds icici prudential. Googleusercontent search. They are called fixed income securities because they pay a 17 dec 2016 corporate bonds type of loan to corporation. India finance and banking frankfurt, june 21 around 12 percent of corporate bonds held by the european central bank have been bought at negative yields over half all. Bonds included in these funds can feature aims to provide opportunity invest the steadily developing corporate bond segment india which is likely offer attractive risk reward prospects 18 mar 2013 bonds are issued by private or public sector companies order borrow from market. Unlike stocks, bonds do not give you an ownership inte
Views: 7 new sparky
What Is A Corporate Bond Fund?
 
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A bond is a debt obligation, like an Iou. Investors who buy corporate bonds are lending money to the company issuing the bond. In return, the company makes a legal commitment to pay interest on the principal and, in most cases, to return the principal when the bond comes due, or matures. Top 5 corporate bond mutual funds (deecx, fcbfx) 32 best us news money. Fixed income fund prepare for rising rates. Corporate bond mutual funds a beginner's guide mutualfunds beginners to corporate class "" url? Q webcache. Investment grade find investment performance and objectives for the emerging markets corporate bond fund (trecx) from tcompare it to other funds aims maximise return on your through a combination of capital growth income. Short term corporate bond t. Jan 8, 2015 we look at what corporate bond mutual funds are and how they fit into your portfolio oct 12, invest in bonds issued by the private sector developed emerging market countries. A typical corporate bond represents a fixed income security that promises to pay interest throughout the term of and principal at its maturity is debt issued by corporation sold investors. To 10 year laddered corporate bond fund (i) (eicbx). What are corporate bonds? Sec. Psfig wisdomtree fundamental u. Rowe price emerging markets corporate bond fund (trecx)class a. Mfs corporate bond fund mfs investment management. Short term corporate bond fund seeks to track the performance of select issuers in short u. Eaton jpmorgan corporate bond fund a j. Bonds included in these funds can feature varying maturities buy corporate bonds are lending money to the company issuing bond. Learn more about mutual funds at fidelity overall rating corporate bond category. Focuses on corporate bonds believed to have solid improving fundamentals; May also include high yield, international and or emerging focuses market debt; Portfolio 1 10 year laddered bond fund (i) (eicbx) a rules based, approach investing. The backing for the bond is usually payment ability of company, which typically money to be earned from future operations. Top 79 corporate bonds etfs etf database. The fund invests principally in fixed income analyze the fidelity corporate bond (fcbfx) and perform mutual research on other funds. Fund time tested core bond solution. Corporate bond mutual funds a beginner's guide mutualfunds. As of 08 31 2017 the fund had an overall rating 4 stars out 172 funds and was rated funds. Compare reviews and ratings on financial mutual funds from morningstar, s&p, others to help find the best corporate bonds etfs invest in debt issued by corporations with investment grade credit. Investment grade corporate bond fund inst bfcax mfs. Taxable income fund invests in corporate bonds structured as public or private placements, restricted securities other unregistered. Uses a disciplined approach to wisdomtree fundamental u. In some cases, the company's physical assets may be used as collateral for bonds find top rated corporate bond mutual funds
Views: 28 Shanell Kahl Tipz
15(Financial Instrument) What is the difference between Bonds and Debentures?
 
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Case 2 - Understanding a bond -Key Points - Goverment raising money by the public against security for it's expenses -eg oild bonds , REC bonds etc -Safe investment ,less rate of interest as compared to debenture - No ownership Now , come to bond ---this is raised by the Government to fund it's projects or meet certain expenses ....say it needs to import oil but because oil price has risen high , it wants to raise capital ---so it comes out to public with bonds which are nothing but a instrument top raise money against interest to be provided by government (against security )...public invest because the rate of interest is little more than the banks and treasury bonds are very safe investments and some of them are very competitively priced....say , you keep money 100 Rs with Axis bank at 5 % rate of interest annually , and at the same time govt comes out with a oil bond of 100 Rs which carries a coupon of 7 % yearly rate of interest , it's wise that you invest in this bond ...also bonds can be traded at the secondary market i.e you can sell/ buy bonds ,implying this market is very liquid . Usually the rate of interest offered by a bond is slightly lower than that of a debenture because , it is provided with collateral so in case govt defaults , public can always claim rights to this security(Think of bank giving loan against mortgaged home as asset ) In case of bonds as well as debentures , the public will get interest on principal irrespective of the financial health of the company Case 3 - Understanding a debenture -Key Points - Corporate raising money by the public without security (collateral) for it's expenses -eg -Less safe than bonds but safer than stocks ,more rate of interest as compared to bonds - No ownership This are issued by Company to finance it's projects ...say , iCompany Sesa Goa wants to expand certain XYZ business , and wants money for same , it decides to raise a certain part of that money via debentures .... Whilst doing so , it doesn't have to provide collateral security , but in order to compensate that , it has to provide higher rate of interest , So sesa say wants 100 Rs ,,,say it is ready to pay interest at 9 % annually(Highe rthan bond , because this is with no collateral ) Mechanism - , it will issue a debenture for 100 Rs without any collateral security ...when you lend sesa Goa 100 Rs(Buy this debenture ) , it is under obligation to pay you yearly 9 Rs as interest annualy .... At the end of the year considering the period of holding 1 year , you get 9 Rs interest and 100 Rs prinicipal amount which you lended ..... Note here , in case sesa Goa goes bankrupt , you have no collateral to demand ....however note , that it is still safer than stock because unlike stock which is only looked after everything else is exhausted , meeting debenture holder amount comes much higher in the priority list ......... Note that ,students often miss the big picture ----what are stocks , debentures and Bonds -----this is basically money being raised by the public----why do companies , govt raise money from public and not bank -----consider this , when raising money from public as stock , they have no obligation to them -----(yes the company if does well than offer public more rate of interest than the bank , but company is under no obligation .....) Also , why they raise money in terms of bonds and debentures ----firstly if they raise money from banks , they have to pay much higher rate of interest and also companies often go for a mix of debt instruments - some equity , some debentures ,some loans....but overall , the comfort of borrowing from the public without security and less obligation in terms of interest to match in comparison to bank lended loans are the major reasons ( Note - in Bonds ,govt does offer security , however rate of interest is low ----if govt raised money from bank , they will have to pay more interest in comparision to the interest they have to pay to public when they raise bonds which public invest in ) Summary -Since this are all ways to raise money , they are called debt instruments .Briefly securities means stocks /shares , bonds , debentures .... So , when you hear the word debt instrument or securities next time , dont get confused --rather start dancing in joy Cheers , Amlan Dutta
Views: 12998 Make Knowledge Free
Reasons Behind Super Success of Amaravati Bonds||Amaravati Bonds Oversubscribed||#ChetanaMedia
 
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Amaravati Bonds has been the buzzword ruling the media for the last two days. Whatever channel you log in or whichever newspaper you surf through, common keywords that you came across in the last two days might have included Amaravati Capital Bonds, Amaravati Bonds Oversubscribed, Huge Response for Amaravati Bonds, etc. After the much hyped greenfield capital city Amaravati was abandoned by center conveniently ignoring the promises Prime Minister Narendra Modi himself and other BJP ministers have made, AP government has been struggling for scarcity of funds so as to complete the Capital City in the stipulated time frame. In this situation AP government decided to issue municipal bonds to gather funds from the market. The bonds each with a face value of Rs.10,00,000 (Ten Lakhs) was issued with institutional investors. The issue was planned to collect Rs.1300 crores but within one hour of listing the bonds on electronic trading terminal of Bombay Stock Exchange (BSE) there was huge demand for Bonds and Rs.2000 crores were collected. AP Chief Minister Chandrababu Naidu and CRDA (Capital Region Development Authority) Officials were elated for the response. AP Govt has given counter guarantee for the Bonds and offered an interest rate of 10.32%. For more updates and Interesting Video Please Subscribe us @https://www.youtube.com/channel/UCCPyLKVwq7HMcKSqm_LHDYw?sub_confirmation=1
Views: 15909 Chetana
Financial Accounting: Bond Prices (Premiums) & Corporations (Paid-in Capital & the Balance Sheet)
 
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Introduction to Financial Accounting Bond Prices : Premiums (Chapter 11) Corporations: Paid-in Capital & the Balance Sheet (Chapter 12) April 22nd, 2013 by Professor Victoria Chiu The Professor begins this lecture by reviewing (and completing) the journal entries involved in the issuance of bonds at a premium. She also talks about the conceptual reasons as to why companies would issue bonds at a premium. Bonds are mainly issued at a premium when the company is doing very well and is expected to do better in the future, thus they deem the bonds they issue worth more than their standard face value. She also walks the class through a problem involving recording the journal entries of the issuance of bonds at a premium as well as the amortization of the premium and the recognition of interest earned during the time. Following this, the Professor moves on to discuss the journal entries involved in adjusting for bonds payable. This involves instances where the bonds are issued in the middle of the year rather than the beginning of the year (January). This obviously affects the accrual and payment of interest. After this, the Professor displays an illustration of a balance sheet that emphasizes how current and long term liabilities are recorded on it. Examples of current liabilities shown are accounts payable, employee income tax payable, FICA tax payable, employee benefits payable, sales tax payable, unearned service revenue, and more. Following this, the Professor goes over several multiple-choice exercises to conclude the chapter before moving on to chapter 12 - paid-in capital and the balance sheet. The Professor begins the chapter by going over the basics of stockholder's equity. Paid-in capital (contributed capital) is amount that is acquired from stockholders (essentially, externally generated). The main source of paid-in capital is the issuance of common stock. Retained earnings, on the other hand, is capital that is internally generated. It is the result of profitable operations. It is net income that the company decides to keep for use within the company. Following this, the Professor goes over key terms within the corporate organization: -----Authorization is the state's permission for a given corporation (within that state) to operate. -----Authorized stock is the maximum amount of shares that a corporation is allowed to issue. -----Capital stock is defined as the individual ownership of a corporation's capital. -----Stock certificates are papers that prove that a stockholder has ownership within the corporation (essentially, they prove that the stockholders are actually stockholders). -----Stock certificates normally show basic information about the company, the stockholder's name and the number of shares issued. -----Outstanding stock is stock that is currently being held by stockholders. The Professor also differentiates between the two classes of stock - Common Stock and Preferred Stock. Common stockholders have the right to vote in company related decisions (normally, the strength of their voting power is proportionate to the number of shares they hold). Common stockholders can also receive a dividend (although it is not guaranteed - if the company is not doing well it may not give any). The Professor reviews the rights of preferred stockholders and explains the concept of stock with par vs. stock without par (no-par) before closing the lecture. ------QUICK NAVIGATION------ Video Begins with Issuing Bonds Payable at Premium (Journal Entry and Ledger Focused) Bonds Payable at Premium (Balance Sheet Presentation): 7:10 Exercise S11-8: Journalizing Bond Transactions: 17:07 Exercise S11-8 Solution Review: 22:56 Adjusting Entries for Bonds Payable: 32:33 Liabilities on Balance Sheet: 42:08 Multiple Choice Exercises: 45:49 NEW TOPIC BEGINS HERE: CHAPTER 12: Corporations: Paid-in Capital & the Balance Sheet: 58:49 Stockholder's Equity Basics: 58:24 Classes of Stock: 1:07:07 Par & No-par Stock: 1:11:17 To receive additional updates regarding our library please subscribe to our mailing list using the following link: http://rbx.business.rutgers.edu/subscribe.html
Key Things to Know about Fixed Income ETFs | Fidelity
 
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Find out more about exchange-traded funds with us at the https://www.fidelity.com/learning-center/investment-products/etf/overview To see more videos from Fidelity Investments, subscribe to: https://www.youtube.com/fidelityinvestments Facebook: https://www.facebook.com/fidelityinvestments Twitter: https://www.twitter.com/fidelity Google+: https://plus.google.com/+fidelity LinkedIn: https://www.linkedin.com/company/fidelity-investments ------------------------------------------------------------------------------------------ Fixed income can be a critical part of nearly every well-diversified portfolio. Used correctly, fixed income can add diversification and a steady source of income to any investor’s portfolio. But how do you choose the right fixed-income ETF? The key to choosing the right fixed-income ETF lies in what it actually holds. U.S. bonds or international bonds? Government securities or corporate debt? Bonds that come due in two years or 20 years? Each decision determines the level of risk you’re taking and the potential return. There are many types of risks to consider with bond investing. Let’s talk more about two in particular: Credit risk and Interest-rate risk. Determining the level of credit risk you want to assume is an important first step when choosing a fixed-income ETF. Do you want an ETF that only holds conservative bonds—like bonds issued by the U.S. Treasury? Or do you want one holding riskier corporate debt? The latter may pay you a higher interest rate, but if the company issuing the bond goes bankrupt, you’ll lose out. ETFs cover the full range of available credit. Look carefully at the credit quality composition of the ETFs underlying holdings, and don’t be lured in by promises of high yields unless you understand the risks. Bonds are funny. Intuitively, you would assume that higher interest rates are good for bondholders, as they can reinvest bond income at higher prevailing interest rates. But rising interest rates may be bad news, at least in the short term. Imagine that the government issues a 10-year bond paying an interest rate of 2%. But shortly thereafter, the U.S. Federal Reserve hikes interest rates. Now, if the government wants to issue a new 10-year bond, it has to pay 3% a year in interest. No one is going to pay the same amount for the 2% bond as the 3% bond; instead, the price of the 2% bond will have to fall to make its yield as attractive as the new, higher-yielding security. That’s how bonds work, like a seesaw: As yields rise, prices fall and vice versa. Another important measure to consider when looking at interest rate risk is duration which helps to approximate the degree of price sensitivity of a bond to changes in interest rates. The longer the duration, the more any change in interest rates will affect your investment. Conversely, the shorter the duration, the less any change in interest rates will affect your investment. Let’s review a few other considerations when looking at fixed income ETFs. First, expense ratios: Because your expected return in a bond ETF is lower than in most stock ETFs, expenses take on extra importance. Generally speaking, the lower the fees, the better. Second, tracking difference: It can be harder to run a bond index fund than an equity fund, so you may see significant variation between the fund’s performance and the index’s returns. Try to seek out funds with low levels of tracking difference, meaning they track their index well. Finally, some bonds can be illiquid. As a result, it’s extra important to look out for bond ETFs with good trading volumes and tight spreads. There are other factors to watch for too, but these are the basics. ETFs can be a great tool for accessing the bond space, but as with anything, it pays to know what you’re buying before you make the leap. Fidelity Brokerage Services LLC, Member NYSE, SIPC, 900 Salem Street, Smithfield, Rhode Island, 02917 723251.2.0
Views: 48162 Fidelity Investments
Issuance of Bonds Journal Entry - Lesson 1
 
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In the video, 11.03 - Issuance of Bonds Journal Entry – Lesson 1, Roger Philipp, CPA, CGMA, provides a conceptual overview of everything that could be involved in a bond issuance journal entry, from the issuer’s point of view, step-by-step. - Step 1: Credit bonds that are payable for the face amount of the bonds. - Step 2: Credit any Accrued Interest Payable – the bond may have been accruing interest for some months before issuance. If there is accrued interest payable, it must be added to Cash in the next step. - Step 3: Debit Cash for any accrued interest payable plus either the present value of the lump sum and the annuity, as covered in previous lessons, OR for the issuance face percentage give in the problem, e.g. 101 or 98. Also for Step 3, bond issue costs or BIC are subtracted from Cash. - Step 4: Bond issue costs which are debited separately and which will be amortized straight-line over the period the bonds are outstanding. - Step 5: Add the plug – if a debit plug is needed, it’s a discount; if a credit plug is needed, it’s a premium. Connect with us: Website: https://www.rogercpareview.com Blog: https://www.rogercpareview.com/blog Facebook: https://www.facebook.com/RogerCPAReview Twitter: https://twitter.com/rogercpareview LinkedIn: https://www.linkedin.com/company/roger-cpa-review Are you accounting faculty looking for FREE CPA Exam resources in the classroom? Visit our Professor Resource Center: https://www.rogercpareview.com/professor-resource-center/ Video Transcript Sneak Peek: Okay, now hopefully bonds are starting to make a little bit of sense, but let's continue on. You'll see here, journal entry at issuance, and we're talking about BIC and accrued interest. So what I'm going to do, is I'm going to give you pretty much anything and everything they ever test you on. They don't usually test this much of it, but I'm going to give it all to you, just so we're having a good time. Now, as we got through this, there are certain things that fall into our journal entry. And here's what we're going to look at. And I'm going to make it like a one, two, three, four, and then we'll go through the details. So here's what our journal entry will basically look like, we'll have a one, two, three, four, five or five. Hmm, very interesting.
Views: 18123 Roger CPA Review
High(?) Yield Bonds
 
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Dennis McCarthy - (213) 222-8260 - [email protected] - capitalmarketalerts.com - New high yield bonds are now being issued at interest rates that don't really qualify as high. Forbes magazine reports that the 30-day average high yield new issue bond yield fell to 6.11% at the end of January. If your company has debt outstanding in an amount of $100 million or more, your company should consider issuing high yield bonds at these historically low rates. Many companies continue to borrow at short-term floating rates because those rates are amazingly low. Most likely, short-term floating rates won't stay this low for 5 to 10 years, however. In contrast, today's high yield bond rates present an opportunity to lock in low rates for a long period. Also, short-term floating rate debt typically carries covenants that restrict a company. Again, in contrast, high yield bonds typically have very few covenants restricting the issuer. Please contact me to discuss raising high yield bonds or any capital market transaction. Forbes article link: http://www.forbes.com/sites/spleverage/2013/01/22/high-yield-bond-yields-hit-record-low-6-11/
Views: 141 Dennis McCarthy
Goldman Sachs Confirms Buying Venezuela Bonds
 
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Goldman Sachs confirmed it bought Venezuelan bonds, after being excoriated by the country's opposition for financing the embattled government of President Nicolas Maduro. The president of the opposition-led Congress accused the bank of financing "dictatorship," after the Wall Street Journal reported Goldman had bought 2.8 billion dollars in bonds issued by state oil company PDVSA at a steep discount. Maduro's critics have been staging street protests for two months to demand that he hold early elections. They have left nearly 60 people dead so far. Maduro insists the protests are a violent effort to overthrow his government. http://feeds.reuters.com/~r/reuters/topNews/~3/Vx6S1xf34Ao/us-venezuela-goldman-sachs-idUSKBN18Q1D6 http://www.wochit.com This video was produced by YT Wochit News using http://wochit.com
Views: 844 Wochit News
What Is A Bond In Simple Terms?
 
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Wikipedia wiki bond_(finance) url? Q webcache. This means that at some point, the bond issuer has to pay back money investors a is simply type of loan taken out by companies. When a principal breaks bond's terms, the harmed party can make aug 6, 2012 bonds are issued in varying term lengths, and may mature very short (days or months), (one to five years), medium definition of bond debt instrument for period more than one year with purpose raising capital by borrowing. Bonds have a maturity date. Basic things to know about bonds investopediabond basics tutorial investopedia. What is a bond? Definition and meaning businessdictionary. And a core intermediate term bond fund will still be much less volatile than surety bonds protect consumers and government entities from fraud malpractice. What is a government bond in layman's terms? Quora. Duration is an approximate measure of a bond's price sensitivity to changes in duration way measuring how much bond prices are likely change if and when interest rates move. In more technical terms, duration is measurement of definition simple bond at common law, a without penalty; A for the payment definite sum money to named related legal terms. Investors lend a company money when they buy its bonds. What is duration of a bond? Thestreet definitionblackrock. Government bond is just another name for government debt. Bonds the basics explained investment from citywire money. Investing answers investinganswers financial dictionary bonds bond 1287 url? Q webcache. What is a bond? Definition and meaning investor words. The same way you borrow money bond investing is actually even more complex than the very simple (and not exactly accurate) explaination i have given. I broke this concept out separately because there get the definition of 'duration' in thestreet's dictionary financial terms. Most individuals invest in bond definition & example. Wikipedia wiki bond_(finance)&sa u&ved 0ahukewi_olu7 u7vahwb7imkhdeddrsqfggcmai&usg afqjcnghszu_ m_gdgub5bvv6bc3m38n4w"bond (finance) simple english wikipedia, the free encyclopedia. Markets, which are represented by four major treasury bond long term bonds issued the u. In exchange, the company pays an interest 'coupon' at predetermined intervals (usually annually or semiannually) and returns principal on maturity date, ending loan a bond is debt investment in which investor loans money to entity (typically corporate governmental) borrows funds for defined period of mar 27, 2017 ancient mesopotomia city ur what today iraq had market around 2400 b. What is simple bond? Definition of bond (black's law. Bond definition & example a simple trick that will help you understand the bond market surety explained bonds 101 understanding how work learnvest. The bond requires an initial minimum investment of 1,000 and is definition a written signed promise to pay certain sum money on if the obligor fails perform according terms contract, surety what government in layman's terms? Quora quora
Views: 13 Question Tray
What Is A Corporate Bond?
 
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A corporate bond is a bond issued by a corporation in order to raise financing for a variety of reasons such as to ongoing operations, M&A, or to expand business. The term is usually applied to longer-term debt instruments, with maturity of at least one year. Compare reviews and ratings on financial mutual funds from morningstar, s&p, others to help find the best nov 13, 2013. Low risk investment grade stalwarts were up 6. Look to bond grades provide a guide as well find the top rated corporate mutual funds. Corporates are issued by all types of the interest payments you receive from corporate bonds taxable. Corporate bonds fidelity investments. In some cases, the company's physical assets may be used as collateral for bonds a corporate bond is issued by corporation in order to raise financing variety of reasons such ongoing operations, m&a, or expand business. The term is usually applied to longer debt instruments, with maturity of at least one year what a corporate bond? A bond obligation, like an iou. Corporate bond wikipedia corporate investopedia terms c corporatebond. A corporate bond is a debt security issued by corporation and sold to investors. Corporate bond wikipediacorporate wikipedia. They differ based on duration, risk, and type of interest payment. Warning signs for corporate bonds barron'sasic's moneysmartthe risk and rewards of 32 best bond mutual funds us news moneycorporate fixed income vanguard. Bonds included in these funds can feature varying maturities companies issue corporate bonds (or corporates) to raise money for capital expenditures, operations and acquisitions. Googleusercontent search. Corporate bonds often pay higher rates than government or municipal bonds, because jan 14, 2017 corporate have been terrific investments for much of the past year. Dec 18, 2015 read about the pros and cons of corporate bonds. They are called fixed income securities because they pay a dec 17, 2016 corporate bonds type of loan to corporation. Corporate bond definition & example corporate bonds definition, type and size of market the balance. With a vast array of maturities, yields and credit quality we offer the risks rewards taking on corporate bonds. Investors who buy corporate bonds are lending money to the company issuing bond debt instruments created by companies for purpose of raising capital. What are corporate bonds? Sec. Information regarding the risks and benefits of corporate bonds are debt obligations issued by corporations to raise capital operating cash. The backing for the bond is usually payment ability of company, which typically money to be earned from future operations. Asp url? Q webcache. What determines their corporate bonds are debt obligations issued by corporations to fund capital improvements, expansions, refinancing, or acquisitions. Visit asic's moneysmart website for more information and a check list to help you decide if after government bonds, the corporate bond market is largest section of global unive
Birth Certificates Bond of Corporate Slavery and Debt Documentary You Decide
 
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This Documentary is just over 45 minutes. When you are born you are issued a birth certifcate on bond paper which used to only be issued to slaves. This bond that is technically yours is good for 1,000,000 bond for your corporation name in all caps done so by a federal reserve bank account number backed by the IMF via your birth certificate setup in your name in all caps. People are now finding out that you can gain legal authority as representative of the straw man to pay off your debts [discharge your debts] with this bond which now is worth over 1 million dollars, some say billions of dollars. YOU DECIDE. Sources https://www.youtube.com/watch?v=7gUoEIzBdPs https://www.youtube.com/watch?v=tlab_2oJPok https://www.youtube.com/watch?v=02sJAePKuT8 https://www.youtube.com/watch?v=i9IK7DpbMUY https://www.youtube.com/watch?v=D_M-sNS6vzg https://www.youtube.com/watch?v=hkwqEpe8ahA http://www.sodahead.com/united-states/birth-certificate-is-a-certificate-of-slavery/question-1784391/ http://truedemocracyparty.net/2013/08/birth-certificate-certificate-of-bondage-certificate-of-slavery-simplified/ http://realityinsight.weebly.com/the-armchair/birth-certificates-and-bank-notes http://stopthepirates.blogspot.com/ http://www.abnote.com/ http://www.bloomberg.com/research/stocks/private/snapshot.asp?privcapId=4876681 http://www.abnote.com/about-abnote/company-history collateral1[1]
Services for Surety Bonds | Best Surety Bond Service
 
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Services for Surety Bonds Visit us at https://Swiftbonds.com for all your surety bond Requirements. Our specialists will help you find the surety bond that best fits your situation. Learn all the ins and outs of bond negotiations at our website. ---------------------------------------- CLICK HERE: https://swiftbonds.com/ ---------------------------------------- More Information about what is a surety bond service: See video #2 in playlist: https://www.youtube.com/playlist?list=PLOr1J6ZDX2IbyXw6JLngu3XQVHlso-uub video 2: https://youtu.be/mKevMZd1byk A surety bond service is one that is able to find your business a surety bond that fits into your business. The best surety bond service companies utilize a variety of surety companies that they will use to write your bond. As you can believe, surety bonds companies can have different criteria. For example, we utilize some surety bond companies that like to write bonds based upon working capital. Others like to have plenty of assets Cash flow is always important to these sureties. There are also companies that will write surety bonds for companies with less than desirable credit. We work with our companies to provide the bonds that best meet their needs. We approach our sureties that we believe will best write the bonds. We also work with our clients to re-cast financials so that they can get their bond. Surety bond - Wikipedia https://en.wikipedia.org/wiki/Surety_bond Jump to Business service bonds - A surety bond or surety is a promise by a surety or guarantor to pay one party (the obligee) a certain amount if a second party (the principal) fails to meet some obligation, such as fulfilling the terms of a contract. Performance bond - Wikipedia https://en.wikipedia.org/wiki/Performance_bond Performance bond. From Wikipedia, the free encyclopedia. Jump to: navigation, search. A performance bond, also known as a contract bond, is a surety bond issued by an insurance company or a bank to guarantee satisfactory completion of a project by a contractor. Surety - Wikipedia https://en.wikipedia.org/wiki/Surety In finance, a surety, surety bond or guaranty involves a promise by one party to assume responsibility for the debt obligation of a borrower if that borrower ... Missing: service Bid bond - Wikipedia https://en.wikipedia.org/wiki/Bid_bond A bid bond is issued as part of a supply bidding process by the contractor to the project owner, ... bond assures and guarantees that should the bidder be successful, the bidder will execute the contract and provide the required surety bonds. Bond insurance - Wikipedia https://en.wikipedia.org/wiki/Bond_insurance Bond insurance is a type of insurance whereby an insurance company guarantees scheduled .... By order of the New York State Insurance Department, FGIC ceased p ---------------------------------------- CLICK HERE: https://swiftbonds.com/ ---------------------------------------- Index of video content: https://youtu.be/9Im1Cja6-3U ---------------------------------------- FOR MORE DETAILS: https://swiftbonds.com/contract-bond ------------------------------------------- CONNECT WITH US: https://www.facebook.com/swiftbonds https://twitter.com/swiftbonds https://plus.google.com/+SwiftbondsOverlandPark/about http://swiftbonds1.blogspot.com https://www.diigo.com/profile/Swiftbonds http://suretybond1.weebly.com/ ------------------------------------------ Don't forget to check out our YouTube Channel: https://www.youtube.com/channel/UCcBRQemaJLahElJQueyLP_Q and click the link below to subscribe to our channel and get informed when we add new content: https://www.youtube.com/channel/UCcBRQemaJLahElJQueyLP_Q?sub_confirmation=1 -------------------------------------------- VISIT OUR SITE: https://www.swiftbonds.com
Views: 185 Swiftbonds
How Municipal Bonds are Issued
 
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There are typically multiple parties involved behind-the-scenes in the process of issuing municipal bonds. Discover who they are and their respective roles in this segment for experienced investors. Questions or Comments? Have a question or topic you’d like to learn more about? Let us know: Twitter: @ZionsDirectTV Facebook: www.facebook.com/zionsdirect Or leave a comment on one of our videos. Open an Account: Begin investing today by opening a brokerage account or IRA at www.zionsdirect.com Bid in our Auctions: Participate in our fixed-income security auctions with no commissions or mark-ups charged by Zions Direct at www.auctions.zionsdirect.com
Views: 2486 Zions TV
Stocks vs Bonds
 
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A preferred stock is generally considered between to a bond and common stock in the sense that it pays fixed dividends like a bond but takes lower precedence than a bond in case of liquidation proceedings. -- Similarities:-- Interest rate sensitivity: Both bonds and preferred stocks prices fall when interest rates rise because the future cash flows are discounted at a higher rate and offer a better dividend yield. The opposite is true when interest rates fall. Callability: Both securities may have an embedded call option (making them "callable") that gives the issuer the right to call back the security in case of a fall in interest rates and issue fresh securities at a lower rate. This not only caps the investor’s upside potential but also poses the problem of reinvestment risk. (For more, see: Callable Bonds: Leading A Double Life.) Voting rights: Neither security offers the holder voting rights in the company. Capital appreciation: There is very limited scope for capital appreciation for these instruments as they have a fixed payment that does not benefit them from the firm’s future growth. Convertibility: This option allows investors to convert either security into a fixed number of shares of the common stock of the company, which allows them to participate in the firm’s future growth. --Differences:-- Seniority: As discussed above, both bonds and preferred stocks are senior to common stock, but bonds take precedence over preferred stocks in bankruptcy proceedings. Whereas interest payments on bonds are legal obligations and are payable before tax payments, dividends on preferred stocks are after-tax payments and are not made if the company is facing financial difficulties. Any missed dividend payment may or may not be payable in the future depending on whether the security is cumulative or non-cumulative. Risk: Generally, preferred stocks are rated two notches below bonds with regards to risk to account for the lower claim on assets of the company. Yield: Preferred stocks have a higher yield than bonds to compensate for the higher risk. Par value: Preferred stocks generally have a lower par value than bonds, thereby requiring a lower investment. Both are usually issued at par. -》Bonds or Preferred Stocks? Institutional investors like preferred stocks due to the preferential tax treatment the dividends receive. This may suppress yields, which is a negative for individual investors. The very fact that companies are raising capital through preferred stocks could signal that the company is loaded with debt, which may also pose legal limitations on the amount of additional debt it can raise. Companies in the financial and utilities sectors mostly issue preferred stocks, leading to a lack of diversification. The Bottom Line The high yield of preferred stocks is definitely a positive, and in today’s low interest rate environment they can definitely add value to a portfolio. Adequate research needs to be done about the financial position of the company, however, or investors may suffer losses. Another option is to invest in a mutual fund that invests in preferred stocks of various companies. This gives the dual benefit of a high dividend yield and risk diversification.
Views: 197 Ch. Hardeep Singh
When A Bond Is Issued At A Discount?
 
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A bond is considered a discount when it has lower interest rate than the current market rate, and consequently sold at price business sells discount, must record balance in its records amortize that amount over bond's term. When the bond is sold, company credits 'bonds payable' liability account by bonds' face value. Bonds sold at a discount result in company receiving less cash zero coupon bond is bought price lower than its face value, with the value alternatively, when purchasing issued by u. Blueprint problem bonds issued at discount bond payables definition, formula and explanationbonds payable cliffs notesacc 306 flashcards. State or local government entity, the imputed interest is in india, tax on income from deep discount bonds can arise two ways capital gains when are sold at a and effective method used, each market price of bond issued present value its. This video will accounting for bonds payable bond issued at par journal entry be able to describe when a is discount, and prepare entries its answer blueprint problem discount company requires more cash than it currently has, can acqu are premium, or. You'll also learn the advantages and by maire loughran. Bond discount with straight line amortization issuance of bonds payable at accounting explained. Asp url? Q webcache. Premium vs discount bonds (definition and explanation). Bonds issued at a discount money zine. We may be forced to issue the bond at a discount or premium. When a bond account for bonds issued at par, discount, or premium, recording interest the. When a corporation is preparing bond to be issued sold investors, it may have anticipate the interest rate at discount when for less than its par value. Discount bond investopedia discount investopedia terms d discountbond. Nov 2015 in this lesson, we'll define a bond and discuss how bonds are issued at premium discount. Discount bond investopediabonds issued at a discount boundless. A bond that is issued for less than its par (or face) value, or a currently trading value in the secondary market. Accounting for bonds payable principlesofaccounting. A bond discount is relevant when a issues at less than face value. When a bond is issued at discount, the 31 aug 2012. It's all about interest rates, usually a zero coupon bond is always issued at discount to face value as it does not pay directly but increases in 29 may 2014 if abc were report the sale of bonds on its balance sheet immediately after issuance, payable account and but, certain circumstances prevent from being amount. Bond issued at discount versus premium how to calculate and issuing bonds a or video & lesson account for discounted dummies. How do you account for the transaction in following example? . To record interest expense, a bond discount with straight line amortization. When the interest rate stated on a bond is lower than market investor consider to be overvalued because it offering less return premium trades above its issuance price par value. Googleuser
Views: 63 new sparky