WALL STREET PREP: BONDS CRASH COURSE EXAM QUESTIONS WITH COMPLETE SOLUTIONS
91 vues 1 fois vendu
Cours
WALL STREET PREP
Établissement
WALL STREET PREP
WALL STREET PREP: BONDS CRASH COURSE EXAM QUESTIONS WITH COMPLETE SOLUTIONS
What is the focus of the course?
analysis of debt
Where does demand for bonds come from?
Demand comes from governments, corporations, and households.
What are Fixed income securities?
Fixed income securities: financia...
WALL STREET PREP: BONDS CRASH COURSE EXAM
QUESTIONS WITH COMPLETE SOLUTIONS
What is the focus of the course?
analysis of debt
Where does demand for bonds come from?
Demand comes from governments, corporations, and households.
What are Fixed income securities?
Fixed income securities: financial instruments that require the borrower to pay a
predetermined amount to the holder of the security in exchange for capital upfront.
Example of a fixed income security
Example: a corporation needs to borrow $5,000,000. Corporation will issue a fixed
income security. Owners of securities, such as investors, now have the right to receive
predetermined amounts in exchange for giving that $5,000,000 upfront.
What are the 2 broad types of debt?
Bonds and Loans
What do the government, households, and corporations use to borrow?
- Government borrows primarily with bonds
- Corporations use primarily both
- Households: borrow with loans, which sometimes may get turned into securitized
bonds
Debt from non-financial corporations
Non-financial corporations: The US is most heavily weighted towards corporate bonds.
Debt from households
Household debt: The US is most heavily weighted towards securitization, while
traditional bank loans dominate elsewhere.
What is securitization?
the procedure where an issuer designs a marketable financial instrument by merging or
pooling various financial assets into one group.
Who dominates the debt market?
, The United States dominates the debt market
% of global Debt:
United States: 40%
Non-US Developed Countries: 46%
Emerging markets: 14%
Bullet bond
- Bond in which the principal repayment is made entirely at maturity.
- Also known as conventional or vanilla bond
- common for corporate + long term government bonds
Zero coupon bond
- a bond that pays no coupons over its maturity. Get all of money at the end, rather than
spread out throughout the amount of years
- Common for short term government bonds
annuity bond
- combines interest and principle to create even payments every period
- Typically issued by insurance companies as a retirement investment product as well
as by financing firms for mortgages and car loans
Notes
unsecured debt with original maturity less than 10 years
Face value / par value / future value
The price of the bond at the maturity date + the interest for that year
Coupon rate
amount of coupon / face value
Rate of return
- Total return = Future value / par value - 1
- Annual return = (Future value / par value)^1 / # of years - 1
Nominal yield
coupon / par value
Current yield
coupon / bond price
yield to maturity
Les avantages d'acheter des résumés chez Stuvia:
Qualité garantie par les avis des clients
Les clients de Stuvia ont évalués plus de 700 000 résumés. C'est comme ça que vous savez que vous achetez les meilleurs documents.
L’achat facile et rapide
Vous pouvez payer rapidement avec iDeal, carte de crédit ou Stuvia-crédit pour les résumés. Il n'y a pas d'adhésion nécessaire.
Focus sur l’essentiel
Vos camarades écrivent eux-mêmes les notes d’étude, c’est pourquoi les documents sont toujours fiables et à jour. Cela garantit que vous arrivez rapidement au coeur du matériel.
Foire aux questions
Qu'est-ce que j'obtiens en achetant ce document ?
Vous obtenez un PDF, disponible immédiatement après votre achat. Le document acheté est accessible à tout moment, n'importe où et indéfiniment via votre profil.
Garantie de remboursement : comment ça marche ?
Notre garantie de satisfaction garantit que vous trouverez toujours un document d'étude qui vous convient. Vous remplissez un formulaire et notre équipe du service client s'occupe du reste.
Auprès de qui est-ce que j'achète ce résumé ?
Stuvia est une place de marché. Alors, vous n'achetez donc pas ce document chez nous, mais auprès du vendeur NurseAdvocate. Stuvia facilite les paiements au vendeur.
Est-ce que j'aurai un abonnement?
Non, vous n'achetez ce résumé que pour €7,80. Vous n'êtes lié à rien après votre achat.
