BU111 Study Guide - Final Guide: Capital Gain, Contract, Initial Public Offering
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BU111 Full Course Notes
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Inflation/deflation: employment rates, exchange rates, balance of trade, productivity. First time if makes their shares publicly available. Investment deal decided what the shares will look like and what it will offer. Represents debt for issuing corporation or government. Fixed rate of return known as the coupon rate or interest expense (often paid semi- annually) Fixed term principal repaid at maturity. Tie debt to a specific asset so if the money is not paid, the bond holder can take that asset. Name of holder is not registered anywhere. Person who has the bond can cash it in. The company who received the bond can recall the bond before maturity. Does(cid:374)(cid:859)t ha(cid:448)e to pa(cid:455) all the i(cid:374)te(cid:396)est that is o(cid:449)ed to (cid:455)ou if it were to keep it until maturity. If interest rates change then you would want to call the debt in. Allows to pay the debt off in chunks.
