Business Administration - Financial Planning RFC125 Chapter Notes - Chapter 1: Price Discovery, Call Option, Treasury Stock
16 Oct 2017
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Chapter 6 fixed-income securities: promises payment of regular interest and repayment of principal at maturity, secured in something other than physical asset. Instalment debenture/serial bond: matures each year during the term of bond, example: issue ,000,000 but ,000 due each year, usually non callable, domestic bond: issued in currency of country of issuer. Foreign bonds: issued outside issuer"s (cid:272)ou(cid:374)tr(cid:455) i(cid:374) the (cid:272)urre(cid:374)(cid:272)(cid:455) of foreig(cid:374) (cid:272)ou(cid:374)tr(cid:455) used: example: canada bond in u. s. a in usd, foreign-pay bonds: can be in interest/principal in whichever country (cad or. Eurobonds: in a foreign market and in other currency than the market bonds are issued: canadian corporation/government issued eurobonds denominated in cad = Chapter 7 fixed-income securities: pricing and trading: market segmentation theory, concentrate portfolio is specific term sector. 2: wholesale bond market, bring together institutional buyers/seller to match trades, perform price discovery (determine current price of security), trade execution, clearing and settlement, provide public transparency of prices.
