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Stepped spread floaters have a provision to change the quoted margin at certain intervals over a floater's life. The quoted margin could either step to a higher level or a lower level. An example of such kind of floater is a 5-year floating-rate note, where the coupon rate is 6-month MIBOR + 1% for the first 2 years, and for the remaining 3 years the coupon rate is calculated based on the 3-month MIBOR + 3%.
Estimating the market value of a share The dividend expansion model suggests a method whereby share values can be estimated from information on the required return on equity an
This is again a distinction which becomes important in case of a default. The senior bondholders have to be paid before the subordinate bondholders. This means th
Q. Just-in-time inventory management? It considerably improves the short-term liquidity of the business with a maximum financing requirement of $138533 rather than $155640. The
Investment intermediaries An investment intermediary includes finance companies, mutual funds, investment banks and securities firms.
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Features of Capital Budgeting Decisions 1. Existence of potentially large anticipated profits. 2. Involves a comparatively high degree of risk 3. Exist
What is the meaning of Breakeven point?
Callable bonds give the right to the issuer to redeem the bond prior to its maturity date, at a specified call price. These bonds are beneficial to the
the approach focussed mainly on the financial problems of a corporate enterprise
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