CSC 课程辅导(2)
Determinants of Bond Yieldsinterest rates are determined in the capital markets by the supply/demand for capital
a bond investor wants to be compensated for - inflation
- risk
- earn a return
- the yield for a specific bond = real interest rate
+ inflation premium
+ default risk premium
+ maturity risk premium
real interest rate & inflation premium is about equal or great than90 day Tbill rate
default risk premium = (yield on this bond-yield on fed bond of same maturity)
maturity risk premium = (yield on this bond - yield on bond of same issuer but diff maturity)
Yield Curve = relation between bond yield & time to maturity at a point in time
Long Term Debt
promise to pay interest (coupon) & repay principal
par - face value - amount paid at maturity - base of $100
discount - price below $100,premium - price above $100
denomination - face value, $1,000, $10,000 or larger
term to maturity - remaining life of bond
liquid - good trading volume
negotiable - in deliverable form
marketable - ready market
Trustee - represents interests of bondholder
- ensures that interest paid, protective covenants maintained, take action if not
- administer sinking fund provisions
Trust Deed - sets forth all protective covenants (restrictions) and requirements of the bond issue
- protective covenants - to safeguard bondholder
Government Bonds
Marketable - fed gov't is largest issuer in Cdn bond market - mostly non-callable
- introduce Real Return Bonds in '91 - interest & prin repayment based on inflated value of original principal
CSB - cash at bank any time - no secondary market - only purchased by Cdns
- maximum purchase limits - must be registered
- regular interest & compound interest
- Canada Premium Bond
Tbills - short term gov't note - most significant money market instrument
- sold at discount & mature at par - difference is taxable as interest income
- sold in auction by BOC- purchased by large institutions & resold to clients in smaller denominations
Provincial - borrow extensively in foreign markets- also issue Tbills & Provincial Savings Bonds
bond quality factors -
Municipal - usually using serial bonds
credit quality factors -
TYPE of Bond by Security
Mortgage Bonds - secured by specific fixed assets
Collateral Trust Bond - secured by securities
Equipment Trust Certificate - secured by equipment
Debentures - unsecured, security is general creditworthiness of company
Subordinate Debentures - unsecured, junior to another security
Posted by Utopia at 5:20 PM 0 comments
CSC 课程辅导(1)
BOND PRICES & INTEREST
Bond - borrower promises to pay interest & repay principal at maturity
Coupon - contractual rate of interest - borrower must pay this every year until bond matures
--- does not change if general interest rates change
Bond Prices - once a bond is sold, the price of the bond will change as interest rates change
-bond prices change so that the bond sold at that price will provide a return equal to current market yields
eg.: bond originally sold for $100 with 7% coupon, market yields for same type of bond are now 9%。 this bond is less valuable because it pays a lower rate -> therefore its price falls
Yield -rate of return earned if buy bond at current price
Bond prices move inversely to changes in market interest
Posted by Utopia at 5:04 PM 0 comments
Wednesday, May 12, 2010
北美投资股市的资源
股市新手炒股资源.
http://blog.wenxuecity.com/myblog.php?blogID=9347 ;学无止境的博客,给大家每一天的小结.(纽约商品,原油期货,黄金期货,TSX).
http://www.hutong9.net/ ; 九号胡同提供了广泛的讨论.(ypm968,CoolMax, Black, Quickhand,XinG,完人 都有独到的见解).特别是班主(Cobra)的 real time 灌水, 盘后的小结堪称经典.更难得的是免费奉献.他的报告比一些收费的服务还详细.这里是非常好的学习股市的地方.
http://www.livecharts.co.uk/MarketCharts/crude.php ;
原油实时地走势图.
http://www.kitco.com/ ;
黄金实时地走势图
Posted by Utopia at 7:23 PM 0 comments
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