Francis Bond Head

Financial Management: Understanding Debt and Risk As a person advances in their ability to generate income, they will typically find themselves with an increasing number of opportunities to acquire debt. If a person desires a new car, they can often purchase one with someone else’s money; if a person wants a larger television, they can often choose to pay for that with borrowed money as well. Understanding debt and learning how to manage the financing of one’s consumption becomes more important…

In this paper, I will evaluate Alice’s goals by using the S.M.A.R.T. planning model and information which are introduced in the book Personal Finance by Rachel Siegel and Carol Yacht, Chapter 1 (2009). Evaluation has to be done on following: a. Pay off student loan b. Buy a house and save for children’s education c. Accumulate assets d. Retire e. Travel around the world in a sailboat EVALUATION a. Pay off student loan Alice has a significant debt obligation – Student loan of $53,000;…

Introduction The focus of this challenge was to undergo extensive research and then use that knowledge to invest responsibly into six stocks. We were given $100,000 to to invest. This challenge taught me how unpredictable stocks can be, and how tricky an investment can become. The six stocks I chose to invest in were Tesla Motors, Air Canada, Apple, Audi, Tim Hortons and Netflix. All together I made $10,530.63. The stock that made me the most money was Tim Hortons (invested $10,000 and has a…

The topic that I find suitable to my career goals is about financial planning. I seek to pursue a field related to business and finance, and this is why I find this topic to be of great interest. As a professional, a financial planner helps people and institutions articulate their financial goals. To achieve this, however, a financial planner has to assess the status of the client before setting a program that will help to achieve the goals of the client. Therefore, these professionals are…

Introduction It was a tremendous shock to most in the financial world when the stock market came crashing down in August of 2008. Apart from the hand full of people who anticipated the disaster, most had lost tremendous amounts of money in the crash and even more in the aftermath. The crash was caused by brokers selling collateralised debt obligations (CDO’s) with high ratings, given to them by the rating agencies (Standard and Poor, Moody’s etc.). But the CDO’s were actually filled with…

burdens and replenish their risk-weighted capital ratios. When, in a single day, S&P slashed its ratings on two sets of AAA bonds backed by residential mortgage securities to CCC+ and CCC, instantly changing their status from top quality to pure junk. 3 This represented an immediate and severe dislocation of the financial markets: The odds are only about 1 in 10,000 that a bond will go from the highest grade, AAA, to the low-quality CCC level during a calendar year. The financial turmoil that…

For my term project I decided to research convertible bonds further and how they are used in the financial industry. Convertible bonds are extremely interesting as they represent a bond with a stock payout if exercised. Also Convertible bonds act like corporate bonds with lower interest rates because of their possible stock options. There is a give and take with convertible bonds because companies will offer lower yields on these bonds and there’s a possibility that their stocks fall or don’t…

One of the investment opportunities available in the international bond market comes in the form of a foreign bond. To be considered a foreign bond, the issuing company residing in one country must have issued the bond in a foreign country in a currency that is native to that foreign country (Mishkin & Eakins, 2012). As an example provided by the textbook, early railroads built in the United States were financed by foreign bonds sold in Britain during the nineteenth century (Mishkin & Eakins,…

fidelity surety bonds, and why does your business need them? Fidelity bond insurance can protect your business against dishonest acts by your employees, damage or loss if a contract is not fulfilled, dishonesty by those who administer pension plans, and more. Surety Bonds can protect you against tax liens against your business, or to guarantee payment of utility bills. There are differences between fidelity bonds and surety bonds. Some kinds of fidelity bonds include: Fidelity bonds for…

A financial market can be defined as a marketplace where assets such as equities, bonds, currencies and derivatives are traded between buyers and sellers. Financial markets are also known to have the following characteristics, transparent pricing, conditions and regulations on trading, fees and costs (Investopedia). Bonetti and Cobham (1992) state that financial markets can be seen as a system which allows ultimate lenders also referred to as the economic agents to lend money ultimate borrowers.…