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23 Cards in this Set
- Front
- Back
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What is funded debt
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CORP. debt due more then one year from issue date.
includes: bonds, notes, and bank loans... (only coroporate) |
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Corp bonds fundamentals:
issues tax on interest risk/ sec reg coupons/ yield quote type |
issuer: pub. traded
fully taxable riskiest/ sec regulation highest coupon/ highest yield quoted in $ 1/8ths |
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Govt. bonds fundamentals:
issues tax on interest risk/ sec reg coupons/ yield quote type |
issued by fed. govt.
fed. taxed-exmpt from state/local safest/ exmpt from reg mid range coupon- lowest yield quoted in $1/32nds (decimal) |
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munie bonds fundamentals:
issues tax on interest risk/ sec reg coupons/ yield quote type |
issed by state/local govt
no fed tax- usually no state tax mid range risk/ exempt from reg lowest coupon/ mid range yield quoted in $1/8th or YTM |
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current yield=
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annual interest/
current market Px |
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What is funded debt
|
CORP. debt due more then one year from issue date.
includes: bonds, notes, and bank loans... (only coroporate) |
|
|
Corp bonds fundamentals:
issues tax on interest risk/ sec reg coupons/ yield quote type |
issuer: pub. traded
fully taxable riskiest/ sec regulation highest coupon/ highest yield quoted in $ 1/8ths |
|
|
Govt. bonds fundamentals:
issues tax on interest risk/ sec reg coupons/ yield quote type |
issued by fed. govt.
fed. taxed-exmpt from state/local safest/ exmpt from reg mid range coupon- lowest yield quoted in $1/32nds (decimal) |
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|
munie bonds fundamentals:
issues tax on interest risk/ sec reg coupons/ yield quote type |
issed by state/local govt
no fed tax- usually no state tax mid range risk/ exempt from reg lowest coupon/ mid range yield quoted in $1/8th or YTM |
|
|
current yield=
|
annual interest/
current market Px |
|
|
What is funded debt
|
CORP. debt due more then one year from issue date.
includes: bonds, notes, and bank loans... (only coroporate) |
|
|
Corp bonds fundamentals:
issues tax on interest risk/ sec reg coupons/ yield quote type |
issuer: pub. traded
fully taxable riskiest/ sec regulation highest coupon/ highest yield quoted in $ 1/8ths |
|
|
Govt. bonds fundamentals:
issues tax on interest risk/ sec reg coupons/ yield quote type |
issued by fed. govt.
fed. taxed-exmpt from state/local safest/ exmpt from reg mid range coupon- lowest yield quoted in $1/32nds (decimal) |
|
|
munie bonds fundamentals:
issues tax on interest risk/ sec reg coupons/ yield quote type |
issed by state/local govt
no fed tax- usually no state tax mid range risk/ exempt from reg lowest coupon/ mid range yield quoted in $1/8th or YTM |
|
|
current yield=
|
annual interest/
current market Px |
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If a bond has a coupon rate of 8% and a basis of 7% then it is trading at:
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a Premium!
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what is a "spin off"
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a corp. diverstiture that results in a subsidiary becoming independant
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trust indenture act of 1939
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requires that all corp bonds be issued under deed of trust. issuer will appoint a trustee to protect bondholds
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accured interest
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calculated 30/360
paid up to settlement ( T+2) note: if started on the 15th use 16 days till next month |
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zero- coupon bonds
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offered at deep discount. pays no int.
valued through Accreration- "assumed int" phantom income benefit investors looking for future capt. or specific goal |
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Refunding
or "Refund bonds" |
sale of new issue of bonds proceeds will retire outstanding issues. used if there is a big decline in int rates. also reduce dilution effect on CS
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CMO's
collaterlized mortgage obligations who are the issuers? |
a bond secured by a pool of mortgage loans.
provides income monthly considered a derivative sec. b/c cash is dependant on pool of mortages... classes= tranches issuers= ginnie mae, fannie mae, freddie mac, FHA loans NOT sally maes |
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Z- bonds are:
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the final trenche of a CO
measured by LIBOR trade rates- most violtial |
