IB-Assignment-Group-3-Sec_A

IB-Assignment-Group-3-Sec_A - 5/30/11 FIXEDINCOME...

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  FIXED INCOME  SECURITIES Roll No. Name 8 Ashlesh Bal 21 Mamta Bansal (Ms.) 24 Niraj Kumar 26 Priti Mittal (Ms.) 27 Priyabrata 28 Pruthvi Reddy Gurram 29 Raja Chaitanya Vikram G 35 Saswati Das (Ms.) Group  Members
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  Fixed income security Ø A fixed income security is a financial obligation of an entity that promises to pay a specified sum of money at specified future dates.  The  entity  promising  the  payment  is  called  the  issuer  of  the  security Ø Common  stock  (ordinary  shares)  do  not  qualify  this  condition because  their  income  (dividend)  yield  can  vary  from  period  to period. Market price of fixed income securities tends to move in a direction opposite to that of interest rates. Bond Terminology  Term to maturity  – date when debt ceases, with maturity being  that exact date and term denoting the number of years till that  date Par value  (maturity value, face value) – amount issuer agrees to  pay at maturity
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  Bond  Characteristics Bonds have different features or characteristics depending on the  specific issuing organizations or institutions. Here is a list of some  of the better known features: Secured Bonds  - Also known as asset-backed bonds, they are  issued using specific properties or assets as collateral. The best  known example of this type of bond is a mortgage bond where the 
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This note was uploaded on 05/30/2011 for the course ECON 101 taught by Professor Ke during the Spring '11 term at Lethbridge College.

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IB-Assignment-Group-3-Sec_A - 5/30/11 FIXEDINCOME...

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