Government debt

On the other hand, bond also act as a source of finance. The bond is one of the debt securities (debt instruments) which issued by issuer and sell it to the investors. The bond will act as a loan whereas the issuer is the borrower and the investor is the lender, the coupon is the interest. (Certified Financial Planner, 2015) Every bond will have a maturity date and also the par value. Maturity date (due date) is the date that the loan will be paid off and the par value is the nominal value of a…

Banks and other financial institutions that prey on college students by giving loans for colleges are relying on the fact that you might not know what the loan might entail for you in the future. If not explained properly, your small little debt might grow to become a huge one with the interest accumulated. Without the proper financial knowledge, loan will become an obstacle in obtaining a quality education. In past eras, money was utilized for all intents and purposes for every purchase. Today,…

Student debt is an epidemic that has taken over the nation, and students are unaware of its ramifications. Schools know that students are willing to pay the high costs for a quality education, however, students do not always know how to pay for their schools. A part of this problem is that students are unaware that there are options other than student loans, there is a way to minimize their impact, and students believe many myths about scholarships that discourage them from seeking them out.…

The shareholders were eagerly awaiting the arrival of ships loaded with gold, silver, and other valuable products from the Spanish colonies, which would multiply the return on their investment in the South Sea Company. The problem was that the boats and wealth had only been in the minds of the promoters who, counting on the monopoly to negotiate with the Spanish colonies, were dedicated to spreading rumors about the immense wealth that were waiting for their shareholders in the new world. To…

During the month of September of 2016, Canada accomplished a dubious economic achievement. For the first time in its history, the amount of debt held by Canadians surpassed the amount of output, or Gross Domestic Product, the country produced (Isfeld 1). This increase of personal debt, leading to Canada surpassing 100 per cent of debt relative to GDP, corresponds with the low interest rates that have been offered to consumers since the ‘Great Recession’ to stimulate growth (1). Underpinned by…

Education is becoming ridiculously expensive, yet at the same time, is now one of the most vital things to survive in this changing world. One of the oldest colleges in American history, Harvard University, founded in 1636, costs $60,659 for tuition, room, board and fees combined. But was it always this expensive? What percentage of 20-somethings actually even went to college back when it all first began? Today, it is almost a given that when high school is done, you are supposed to go to…

Suze Orman once said “debt is sacrificing your future day needs, for your present day desires” (Suze Orman). According to The Higher Education Quarterly, during the 1980s, a political consensus developed concerning the need to increase participation in higher education. How to finance this increase, however, was a matter of contention. While successive Conservative governments demonstrated a commitment to increasing the number of students, this aim was subordinate to their central concern of…

qualifications. To those without college degree are practically “loss” in economic status. (Pew research center) To those who completed college believed having a post-secondary education would elevate his or her social mobility but, sadly are beaten by student debt. Student…

struggle to manage debt after graduation, and sometimes those who drop out and have to pay for an unreceived credit. Or so to speak. One such student and former assistant district attorney, author Robert Applebaum, wrote “Cancel Student Loan Debt to Stimulate the Economy” after he realized he could not support himself nor pay off his student loans while working as an assistant DA. Applebaum argues that student loan debt should be cancelled for the following reason: forgiving student loan debt…

The Imminent High-Yield Debt Catastrophe The Imminent High-Yield Debt Catastrophe High-yield debt investments, which are often called junk bonds, are investments that typically have lower credit ratings and higher risks, but many investors choose these vehicles to receive higher yields when traditional stocks and investments are only generating modest returns. China 's economic problems and heavy investments in high-yield debt have exacerbated the problems of investors tying up too much money…