FIN 4486 (FIN 4486)

Equity Introducing the stock market Why do companies do IPOs? Question 1: Question 2: Question 3: Question 4: The nature of equities What is the prime reason that Jenny’s discretionary income is more volatile than her salary? - Her mortgage payments and necessities are fixed A wedding planning company has a high fixed-cost base and a lot of debt. Who would you rather be? The S&P 500 stood at 1848 at the end of 2013. The brown line stood at 2639 at the end of 2013 Question 1: Questio...

Fixed Income The roots of the bond market What do the green bars at the bottom signify? According to the table on the right, which country owns 2.9% of total US debt? What quality of US government bonds causes investors to buy them when market volatility rises? Why is fixed income called fixed income? Question1: Question2: Question3: Question4: Bond Valuation When investors doubt the creditworthiness of a As a general rule, what percentage of debt to GDP will make a government’s bond...