StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

This paper is all about bonds and their different types - Essay Example

Comments (0) Cite this document
Summary
This paper is all about bonds and their different types. The paper elaborates regarding the importance of bonds. Its also include the value and confines of the issuance of bonds. Study shows how interest rates influence the rates of return on bond to condense or hike…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER92.9% of users find it useful
This paper is all about bonds and their different types
Read TextPreview

Extract of sample "This paper is all about bonds and their different types"

Download file to see previous pages Let's have a glance over the definition of Bonds and their importance and usage.
A debt security in which the issuer is liable to pay interest at a later date to the security holder, which termed as maturity is called bonds. More precisely we can say that a bond is a type of a loan in which the person which issues the bonds is termed as borrower and by contrast a person which holds it, termed as lender. Interest or coupon rate is the thing which becomes a bridge between the borrower and lender which ultimately constrains the value of return, and it must be repaid at fixed interval over a specified period of time.
A little bit contradiction found between the bonds and stocks. In general, both are securities but stock holders are the equity stake holder of the company and known as the real owner of the entity, while the bond holders are the lenders to the issuer, which usually have a specified term of maturity after which the bond security gets redeemed (Vernimmen, 2006). According to the statistics of the Federal Reserves (FED), there are more than $1.7 trillion municipal securities, $3.6 trillion of outstanding US Treasury securities, $2.7 trillion of corporate bonds and more than $470 billion of bonds issued by the foreign governments and corporations in the United States. There are several types of bonds a corporation issues.
Usually treasury bonds are referred as the government bonds, whi...
anding US Treasury securities, $2.7 trillion of corporate bonds and more than $470 billion of bonds issued by the foreign governments and corporations in the United States. There are several types of bonds a corporation issues.
TREASURY BONDS:
Usually treasury bonds are referred as the government bonds, which are issued by the US federal government. The bonds are free from default risk because the federal government will make payments on the promised time period. Now, we are well aware with the fact that the treasury bonds have no default risk but that's not mean that such bonds are totally free from risk because the price of the bonds may increase or declines with the fluctuations in the interest rates (Vernimmen, 2006).
Treasury bonds are termed as the safest bonds, because the collateral of these bonds are in the hands of the government, which attracts the confidence of the investors and become a triumph for both the corporations and the bond holders.
CORPORATE BONDS:
We can get an idea in an instant from the name of the corporation bonds that the bonds which are issue by the corporations in order to raise the overall equity of the firm are called corporation bonds. As compared to the treasury bonds, corporation bonds have the default risk appetite in it. It means from any contingency, if the firm envisaged a bad time on the financial health then probably the firm is unable to facilitate its bond holders or we can say that unable to meet or fulfill their financial promises and legal obligations (Cinnamon, 2006). Level of default risk varies with the characteristics of the corporate bonds, which often refereed as "credit risk".
MUNICIPAL BONDS:
Municipal bonds are also issued by the local government. Its also have default risk like the corporation bonds. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“This paper is all about bonds and their different types Essay”, n.d.)
This paper is all about bonds and their different types Essay. Retrieved from https://studentshare.org/miscellaneous/1505597-this-paper-is-all-about-bonds-and-their-different-types
(This Paper Is All about Bonds and Their Different Types Essay)
This Paper Is All about Bonds and Their Different Types Essay. https://studentshare.org/miscellaneous/1505597-this-paper-is-all-about-bonds-and-their-different-types.
“This Paper Is All about Bonds and Their Different Types Essay”, n.d. https://studentshare.org/miscellaneous/1505597-this-paper-is-all-about-bonds-and-their-different-types.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF This paper is all about bonds and their different types

Disaster Bonds/Catastrophe Bonds

This is owing to the reason that these bonds are viewed to be risk-related securities which tends to uplift the position of an economy by raising huge amount of money during any sort of catastrophe such as the occurrence of floods, earthquakes and hurricanes among others (Coval, Jurek & Stafford, 2008). In this paper, a brief overview and a detailed explanation about this class of bonds, i.e. catastrophe bonds will be taken into concern. Moreover, the interrelation of these bonds with the conceptions of systematic (market) risk and idiosyncratic risk along with interest-rate risk will be considered. Various aspects that include the association of CAT bonds with the Theory of Asset Demand and comparison of these bonds with more co...
10 Pages(2500 words)Term Paper

Illicit Trafficking of All Types

The activities along these ports have attracted human traffickers, drug barons and even terrorists. Many South American illegal goods find their way in Africa through the ports in the Indian Ocean. This may be attributed to corruption and poor custom laws and regulations (Ploch, 2010). With the effects of the trafficking activities affecting many international countries the sensitivity of the matter has increased. In this paper I will focus on Kenya activities along the Kenyan coast. The paper will focus on human, drugs and weapon trafficking in Kenya. Additionally, it will focus on the effects of these activities in the country and the international community. The paper will have an insight on how the trafficking activities affe...
4 Pages(1000 words)Research Paper

Different Types of Kangaroos

Kangaroos are of different types and they live in different habitats. There are the eastern gray ones that live in the east of Australia. They are particularly the heaviest and are mostly seen at night more than they are during the day. There is the red type that is found in almost all parts of Australia making it the most widely known. The other type is the ones in the west of Australia that are also gray (Knox 42 – 100). They are however smaller than their eastern counterparts and they are notably loud, slim and have males that have a distinct odor. They are therefore unique animals that need to be well taken care of especially their habitats.
Martin Luther King, Jr. (Jan 15th, 1929 to Apr 4th, 1968)
Civil rights i...
3 Pages(750 words)Essay

Different Types of Friendships

...Friendship "Friendship is a single soul dwelling in two bodies" (Aristotle) God has blessed me with many relations. Some are bonded so strong enough that there influence will remain till my death. Friendship is one of such lovely relation. Since childhood I meet hundreds of fellows. Every one has different and unique nature. Most of them leave pleasant memories but some have also harsh one. But I love to remember and call those who always been good to me. I love to enjoy their company and always wish to live with them. After many experiences in my life, I recognize that every person in you life need not be your friend. As I have my own individual nature and thoughts so it is not necessary that the person I meet should have the mind of my...
4 Pages(1000 words)Essay

Bonds

... volatility, the difference of 1% is not significant enough to overshadow the other factors. WTM bonds therefore have higher price volatility. The duration based estimate of return is different from the actual return calculated based on expected price changes because of the following reasons. First, the duration-based approach views the entire duration of the bond from a given point in time. Given that the bonds earn interest at different rates, the durations for the bonds are also different and are less than their terms respectively. Also, when durations are considered, bond prices are affected hence resulting in different interest rates of return. Changes in prices, which are imminent in this case, are also not taken into consideration...
1 Pages(250 words)Essay

Different Types of Memories

...Psychology: Memory When dealing with psychology, and talking about memory, it means the process in that allows information to be, stored, retrieved and encoded. There are deferent types of memories: Long-term, Short-term, and Sensory memory. In which they are into other sub-topics of memory (Baddeley, 45). When a person talks about a particular capital city, deferent types of food, functions of objects, a particular vocabulary, social customs or even an understanding of mathematics, he/she will recall basing on semantic memory. I once told my home science teacher different types of traditional foods in Africa. Individuals who tend to use the episodic memory are those who put themselves in a particular event and assume to be the main...
1 Pages(250 words)Essay

Different Types of Writing

...Different types of writing: argumentative, narrative and expository essay I love writing because it exposes one to numerous and varied experiences. I therefore enjoyed the writing course in which we undertook numerous assignments. Writing is as interesting as it is expository. Individual writing and collaborate writing both offered different experiences since they presented unique challenges all of which required effective resolution in order to construct a coherent piece. I wrote numerous pieces on various subjects and topics.. Among the types of writing, I undertook were argumentative essay, a narrative and expository essay among others. Each of the above types of writing had unique requirements. This enhanced the interactivity...
2 Pages(500 words)Essay

Different types of advertising

...Different Types of Advertising Different types of advertising exist. The notable seven types include brand, retail or local, direct-response, business-to-business, institutional, non-profit, and public service advertising. Brand advertising targets the public to raise awareness about particular goods and service with the intent of establishing a long-term customer loyalty. The advertisers create a unique image and name in the minds of the consumers (Moriarty, Mitchell, & Wells, 2011). Retail or local advertising concentrates on the retailers, distributors, and dealers within a given geographical locality. The advertisement employs postcard coupons, mailers, and flyers to connect with retailers in a local area (Shah & DSouza, 2009...
2 Pages(500 words)Assignment

Different types of variables

... Variables in a sociological research Variable are the qualities, properties or characteristics of persons, things or situations that are prone to change or vary. Examples of the variable are sex (male or female) age academic success stress and pain. In research, the variables are in two broad categories to make the research more understandable. However, there are other categories of research variable. The main types of variables are the dependent and independent variables. Independent variables, are variables that influence other variables (Lietz, Langer, and Furman 23). The researcher intervenes on these factors to see the resulting change in the dependent variable. On the other hand, dependent variables are outcome variables reflecting...
2 Pages(500 words)Essay

Different types of Asthma

...Different types of Asthma Asthma is a chronic disease that affects the airways into the lungs. It causes the patients to have episodes of a bronchospasm, inflames airways, and causes hyperinflation of the alveoli. The most recent data for the Centers of Disease and Prevention states that in 2010 there were 18.7 million adults and 7 million children suffer with asthma in the United States. Out of these people 46.9 percent have had at least one or more asthma attacks in their lifetime. There are many different causes that trigger asthma attacks. In my essay, I will be discussing some of the different types of asthma conditions, such as allergic asthma, occupational asthma, and childhood asthma, their symptoms and what types of medications...
4 Pages(1000 words)Essay

Different Summaries of Essays

She emphasizes the issue of discrimination by pointing out the different aspirations of white and black children – white the white child can aspire to be anther Galileo, the black child will hope to be another Jesse Owens. Through the medium of graduation – passing from one stage to the other – the author also paints an eloquent portrait of personal growth and the hope that lies inherent in the graduation process for the black child, through her description of the chorus of “Yes Sirs” and “Amens” falling around the room like rain through a ragged umbrella.
Francis Bacon portrays the value of studies as being an object of delight and a useful accoutrement to have. The purpose of studie...
8 Pages(2000 words)Essay

Different Factors That Cause Food Spoilage

The mechanism of action of these microbes is quite interesting. For example, some microbes release enzymes into the liquid surrounding them and absorb nutrition from the fluid digested externally. On top of that, this process of digestion leaves behind a residue of toxic waste, which is poisonous. That is why food items (both natural and processed) with high fluid content tend to be more susceptible to spoilage. So this is one internal or intrinsic condition for food spoilage.
Also, the vulnerability of a food item for a microbe attack is largely determined by its classification. Food such as carbohydrates, fats, and proteins are made up of organic compounds, whose nutrition attracts microbes. On the other hand vitamins and m...
6 Pages(1500 words)Assignment

Different Models of Exchange Rate Determination and Their Empirical Support

Specifically, some of the discussed models of exchange rate determination are the balance of payment approach model, the monetarist or asset approach model, and the martingale-random walk model. Moreover, the paper will also integrate the experiential observations and examples during the paper, in order to understand the practicality of these models.

Under the balance of payment approach, the domestic cost of foreign currency is established like the cost of any other article of trade. In other words, the market demand and supply curvatures are intersected in the exchange market for that particular foreign currency. The modeling of the abovementioned approach related to the demand and supply for foreign exchange is quite...
13 Pages(3250 words)Term Paper

Three Types of Unemployment

Nevertheless, whatever the reasons may be, the state of unemployment is fatal for any person if he is actively seeking employment. Any individual at any stage can be bitten by this worm of unemployment. Unemployment also gives an indication of how the economy of a country is performing, higher the number of unemployed people in the economy more is the dipping status of the economic sector. So hereby, we see that the country’s unemployment status has an inverse relationship with economic growth. The economic growth of a country is governed by inflation in the economy, which in turn is governed by the money supply in the economy.

NSSO defines Unemployment as a situation in which all those who, owing to lack of work...
15 Pages(3750 words)Assignment

James Madison's 51st Federalist Paper

If this theory was seriously followed, it would suggest that the citizens must opt for the president, the legislators, as well as the judges. However, the framers identified certain realistic problems in making all the offices elective. Especially, the judicial branch would face problems because the typical person does not have knowledge about what qualifications judges ought to have. Judges must have great capability, but also not have any political pressures. While federal judges are selected for life, their philosophy will not be inclined via the president who appoints them or the senators whose permission the president will take.

All the arguments were generated due to his past life as he was in an aristocratic fami...
6 Pages(1500 words)Term Paper

Appraisal of the Work's Reviews about Medicine

The authors have referred to appropriate and adequate works. The author referred to an explicit range of databases and periodicals. A wide period range was covered as literature review was done of proceedings of the Society or Pediatric Research from 1990 to May 2006.No language restrictions were set as the author referred to the translated version of one trial published in German (Schrod 1993) as well. References of included studies were also reviewed. The literature review also included Grey literature identified by hand searching the proceedings the Society for Pediatric Research Conference published from 1990 to May 2006.
The relevance of the studies included was partial. The standard search strategy of the Cochrane Neona...
14 Pages(3500 words)Literature review

Arab Americans and Bonds of Hate Groups

The Arab-Israeli conflict has so far been the major influence on how the Arabs were treated in the United States criminal justice system. The American partiality towards Israel and the Arab hostility has been a prominent variable in the American criminal justice system’s policymaking. However, the single most significant historical development that has impacted the relationship between Arab Americans and the criminal justice system was the 9/11 terrorist attack. This event is pivotal in the criminalization of the US immigration law and the legal and bureaucratic reforms that were implemented, including the new alien detention authorities of the US Patriot Act and the separation of the service and law enforcement functions of...
6 Pages(1500 words)Assignment

The Globalization Policies in Different Countries

...International trade International trade Introduction The Globalization, Liberalization and Privatization policies adopted by different countries, opened the doors widely open for international trade. Foreign investment and participation in business is welcomed by many countries. The consumers will get better products at cheap rates because of the competition in the market. For example, as per the economic principle, scarcity of a commodity creates demand in the market and hence the price of that commodity will go up. Because of the foreign participation in domestic market, the customers will never fee any scarcity and hence the prices will come down definitely. But most of the countries are still confused about the extent...
6 Pages(1500 words)Coursework

Analysis of the Methods of 3 Research Papers about Child Abuse

Research ethics was maintained as the identity of the individuals participating was kept secret. As far as the validity of the study was concerned, the researchers attempted to use content validity in order to get an accurate response. The content validity focused on measuring off the ethnicities and gender percentages within the area and attempting to get a random sample of individuals via the phone. Their approach to random calling allowed for a significant random sample in the study. There were a few issues, however, with this type of approach. Those answering the phone sometimes were not always the desired individual, and not all of the desired people were surveyed. Different replacements did have to be used, and the attempt w...
6 Pages(1500 words)Literature review

Analysis of Articles about Climate Change

...). This was for the first time that humanity was realizing that CO2 was the major gas responsible for about half the creation of greenhouse effect. The report also called for a conscious reduction of such gas emissions by controlling human activities that caused them. The report was very precise in terms of the prediction about temperature enhancement. The projection of the available data into the future years led the authors (Houghton, Jenkins and Ephirams, 1990) of this study to predict that global mean temperature will increase by 0.3 oC per decade during the 21st century. The shocking part of this prediction was that this kind of a temperature increase had never happened within the time span of past 10,000 years (Houghton, Jenkins...
6 Pages(1500 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic This paper is all about bonds and their different types for FREE!

Contact Us