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Changes in the bond value is inversely related to the change in the interest rates. If an investor holds a long bond position, he would incur loss if the in
Cash flow duration, like effective duration, considers the change in the cash flow due to prepayment with the change in the interest rate. In effective duration,
Need to Widen and Deepen the Government Securities Market The importance of the Government Securities markets can be evaluated from three angles as follows: From the Gove
Citilink will start a new business line on 1st July, 2011 to make and sell bus souvenirs. The target sales and production volume are 525,000 in next year. The following projected
State about the Net present value Net present value maximisation is superior to the profits maximisation as an operational objective. As a decision criterion, it involves a co
Source documents of an accounting system: Source documents are those documents that identify the particular transaction that is being recorded. They act as an internal control
Evergreen Company Ltd has been promoted by promoters. They are trying to decide how the company could be financed. There are three choices: i. Issue Rs 500,000 in Equity shares
Principles of corporate governance Leadership: Every corporation should be headed by a proficient BOD which should exercise leadership, venture, honesty and judgments in dire
An Investor can receive income from this source when the bonds purchased at discount are held up to maturity or when he sells the bond before ma
Bill Nicholson wants you to help him prepare the financial case for moving the manufacturing operation to Andover. He has specifically expressed interest in getting answers to th
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