Bonds

The year 2008 was hallmarked by a main financial-crisis particularly in United States. The recession witnessed therefrom was the highest since the 2nd world war. This had consequential effect since this financial crisis in U.S spread to other countries which led to detrimental impact to other countries economic system. A detailed analysis showcase that the financial crisis actually commenced in the year 2006, particularly, when the subprime-market for mortgage in United States commenced to…

To ‘short’ in finance means a prediction that the investments will go down in future. Alternatively, it is an expert guess and analysis of the possible future decline in the line of investments. In this story, we can see the people of high profile with strong financial base predicting the fall of credit facilities and housing bubble before someone else could do so. They were able to use cognitive skills to determine the situation. However the prediction looked more of a game, but it turned out…

CHAPTER-4 ANALYSIS AND INTERPRETATION CREDIT MANAGEMENT AT KAR MOBILES PVT LTD: Very few companies have attempted a systematic articulation and formalization of their credit policy and KAR MOBILES PVT LTD is one among them. TERMS OF PAYMENT: Terms of payment at KAR MOBILES PVT LTD are open account. Credit sales at the company can be As per the purchase order the amount is taken at the time of delivery. • The company excise duty is 12%. • Letter of credit is also followed. • Mode of…

Fundamental principle of investment is the relationship between the risk and return tradeoff, where if there is high risk it will compensate with high return as well as the low risk with lower return. The risk can be classified into two types which are systematic (uncontrollable) risk and unsystematic (controllable) risk. The examples of systematic risk are the interest rate risk, inflation risk, foreign exchange risk, country risk, political risk and market risk. Meanwhile, the example of…

The indicated capitalization rate for this investment based on the information provided is 8.20% indicating the value of this property to be $7,317,073 or $7,320,000 rounded. I base this conclusion on the following calculations: • The mortgage constant is .085972 calculated using the following HP-12C keystrokes: F Clx 1 PV 6 g i 20 g n PMT 12 x • The percent paid off on the mortgage after 5 years is 15.1004% calculated using the following HP-12C keystrokes: F Clx 6 g i 20 g n 1 PV PMT 5 g n FV…

GE Capital is the monetary administrations unit of the American aggregate General Electric. It gives business loaning and renting, and also a scope of monetary administrations for human services, media, correspondences, amusement, buyers, land, andaviation. It has various divisions, including GE Capital Aviation Services, GE Energy Financial Services and GE Healthcare Equipment Finance. GE Capital concentrates principally on advances and rents that it guarantees to hang all alone accounting…

1. What is the maximum amount of new loans that this bank can make? The bank is only required to keep 10% of the demand deposits as reserves. 10% of $99000 is $9900. The bank can therefore make loans up to $99,000 - 9900 = $89,100. It has actually made loans worth $66,000. So even with no change in the required reserve ratios the bank can still make additional loans worth $23,100. 2. Assume that the bank makes these loans. What will the new balance sheet look like? If the Fed reduces…

Suppose you've just been hired as the company ABC, Texas company specializing in medium to create high fashion financial analysts. Since no one in the company is familiar with the basics of financial planning, you have been asked to prepare a brief report, the company's CEO can use it to achieve at least a basic understanding of the topic. First of all, you've collected from some documents on this issue, use the appropriate questions to develop a list of these documents to answer. In fact, the…

Article Citation The Impact of Dodd-Frank on Community Banks. (2016). Journal of Taxation & Regulation of Financial Institutions, 29(3), 49-51. I located this article by searching in the Bellevue University’s online library tool with the key words “Dodd-Frank” “Impacts” and then filtered for scholarly articles published in 2015-2016. Main Issue of Article Although the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2012, also known colloquially as “Dodd-Frank”, was written to…

When comparing the retirement plans, money purchase plan, profit-sharing, and employee stock ownership plan and 401(k) it is determined that all types of defined-contribution plans (Noe, 2011). Money purchase plan requires setting annual contributions from the employer to individual accounts and is subject to certain funding and other rules. In other words, the employees' to make contributions on a tax-favored basis to individual retirement accounts (IRAs) owned by the employees. I believe the…