Convertible Bonds Primer
... opportunity to redeem the bonds in either stock or cash. Ideally, the two values should be equivalent, but investors should prefer cash because of the potential slippage in stock price as bondholders simultaneously sell stock to obtain cash. Sleeping Investor Clause – If the current stock price is a ...
... opportunity to redeem the bonds in either stock or cash. Ideally, the two values should be equivalent, but investors should prefer cash because of the potential slippage in stock price as bondholders simultaneously sell stock to obtain cash. Sleeping Investor Clause – If the current stock price is a ...
Impact of the Payment of Interest on Demand Deposits
... This argument was often generalized to apply to interest rate competition for all bank deposits, time as well as demand. A third reason, also relating to lower costs expected to result from the prohibition, concerned deposit insurance for banks c A major concern was how banks, in their weakened fina ...
... This argument was often generalized to apply to interest rate competition for all bank deposits, time as well as demand. A third reason, also relating to lower costs expected to result from the prohibition, concerned deposit insurance for banks c A major concern was how banks, in their weakened fina ...
I What Is the Optimal Inflation Rate?
... Zero lower bound. The problem of debt-deflation is further exacerbated by the zero lower bound on nominal interest rates. Over the long run as inflation falls, nominal interest rates generally fall as well. Once nominal rates reach zero, they can fall no further, rendering the conventional instrumen ...
... Zero lower bound. The problem of debt-deflation is further exacerbated by the zero lower bound on nominal interest rates. Over the long run as inflation falls, nominal interest rates generally fall as well. Once nominal rates reach zero, they can fall no further, rendering the conventional instrumen ...
Cheap Credit, Collateral and the Boom-Bust Cycle
... In order to test the qualitative implications of my model at the reduced-form quantitative level, I build on a series of studies by Mian and Sufi (2009, 2011, 2012) and Mian, Rao and Sufi (2012) and show that the basic predictions of my model are borne out by the data. In particular, I find that dur ...
... In order to test the qualitative implications of my model at the reduced-form quantitative level, I build on a series of studies by Mian and Sufi (2009, 2011, 2012) and Mian, Rao and Sufi (2012) and show that the basic predictions of my model are borne out by the data. In particular, I find that dur ...
Risk Management by Insurers: An Analysis of the Process
... because, other things equal, such stability improves their own utility, at little or no expense to other stakeholders. In truth, this argument can be traced back to the literature on the theory of agency. In this area, the relationship between firm performance and managerial remuneration is clearly ...
... because, other things equal, such stability improves their own utility, at little or no expense to other stakeholders. In truth, this argument can be traced back to the literature on the theory of agency. In this area, the relationship between firm performance and managerial remuneration is clearly ...
piedmont office realty trust, inc. - Piedmont REIT
... Certain statements contained in this Form 10-Q may constitute forward-looking statements within the meaning of the federal securities laws. In addition, Piedmont Office Realty Trust, Inc. ("Piedmont"), or its executive officers on Piedmont’s behalf, may from time to time make forward-looking stateme ...
... Certain statements contained in this Form 10-Q may constitute forward-looking statements within the meaning of the federal securities laws. In addition, Piedmont Office Realty Trust, Inc. ("Piedmont"), or its executive officers on Piedmont’s behalf, may from time to time make forward-looking stateme ...
1 Estate Planning Issues With Intra-Family Loans and Notes Steve R
... fact that a note was given in return for the transfer, if the loan is not bona fide or (at least according to the IRS) if there appears to be an intention that the loan would never be repaid. (If the IRS were to be successful in that argument, the note should not be treated as an asset in the lender ...
... fact that a note was given in return for the transfer, if the loan is not bona fide or (at least according to the IRS) if there appears to be an intention that the loan would never be repaid. (If the IRS were to be successful in that argument, the note should not be treated as an asset in the lender ...
On checking the Reuters screen, you see the following exchange
... complete these transactions. It would be inconvenient, to say the least, for individual buyers and sellers of foreign exchange to seek out one another, so a foreign exchange market has developed to act as an intermediary. Most currency transactions are channeled through the worldwide interbank marke ...
... complete these transactions. It would be inconvenient, to say the least, for individual buyers and sellers of foreign exchange to seek out one another, so a foreign exchange market has developed to act as an intermediary. Most currency transactions are channeled through the worldwide interbank marke ...
Intermediate Accounting
... • To be included in this category, an asset must have three characteristics: • The asset must be held for use in operations and not for investment. This characteristic does not imply that the asset must be continuously used. For example, the furniture and fixtures in coffee shops are included in its ...
... • To be included in this category, an asset must have three characteristics: • The asset must be held for use in operations and not for investment. This characteristic does not imply that the asset must be continuously used. For example, the furniture and fixtures in coffee shops are included in its ...
True/False Questions
... 30. In the U.S., savings institutions must concentrate their assets in __________ lending. A) mortgage B) commercial C) consumer D) government E) money market Answer: A Page: 18 Level: Easy ...
... 30. In the U.S., savings institutions must concentrate their assets in __________ lending. A) mortgage B) commercial C) consumer D) government E) money market Answer: A Page: 18 Level: Easy ...
ACI Dealing Certificate syllabus
... It is the responsibility of a central bank to regulate the most commonly seen bubble, i.e. inflation. This is part of their monetary policy. Monetary policy is the targeted use of financial instruments and measures to influence the economy. Apart from aiming at a stable price level, the monetary pol ...
... It is the responsibility of a central bank to regulate the most commonly seen bubble, i.e. inflation. This is part of their monetary policy. Monetary policy is the targeted use of financial instruments and measures to influence the economy. Apart from aiming at a stable price level, the monetary pol ...
Interest Rates and Bond Valuation
... We can now add the values for the two parts together to get the bond’s value: Total bond value = $517.25 + 355.71 = $872.96 Therefore, the bond should sell for about $873. In the vernacular, we say this bond, with its 5.6 percent coupon, is priced to yield 7.6 percent at $873. The Royal Bank bond no ...
... We can now add the values for the two parts together to get the bond’s value: Total bond value = $517.25 + 355.71 = $872.96 Therefore, the bond should sell for about $873. In the vernacular, we say this bond, with its 5.6 percent coupon, is priced to yield 7.6 percent at $873. The Royal Bank bond no ...
Endogenous financial intermediation and real effects of capital
... of investment projects they finance, is endogenous. Given the moral hazard problem considered, a financial intermediary can lower the interest rate on loans to induce agents with a choice of projects to invest in the socially efficient project (Stiglitz and Weiss, 1981). However, inducing this behav ...
... of investment projects they finance, is endogenous. Given the moral hazard problem considered, a financial intermediary can lower the interest rate on loans to induce agents with a choice of projects to invest in the socially efficient project (Stiglitz and Weiss, 1981). However, inducing this behav ...
N - Personal.psu.edu
... We start with the extremely important assumption that the firm’s objective is to maximize profits. In what follows, we are going to obtain a firm’s profit maximizing condition regarding the profit maximizing level of labor input (N is the notation for labor). For now, we take prices (P) and the nomi ...
... We start with the extremely important assumption that the firm’s objective is to maximize profits. In what follows, we are going to obtain a firm’s profit maximizing condition regarding the profit maximizing level of labor input (N is the notation for labor). For now, we take prices (P) and the nomi ...
EAST WEST BANCORP INC (Form: 10-Q, Received
... those described in the documents incorporated by reference. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date ...
... those described in the documents incorporated by reference. When considering these forward-looking statements, you should keep in mind these risks and uncertainties, as well as any cautionary statements the Company may make. Moreover, you should treat these statements as speaking only as of the date ...
How the Affluent Manage Home Equity to Safely and Conservatively
... bites the bullet and secures a fifteen-year mortgage at 6.38% APR and shells out all $40,000 of his savings as a 20% down payment, leaving him zero dollars to invest. This leaves him with a monthly payment of $1,383. Since he has a combined federal and state income tax rate of 32%, he is left with an ...
... bites the bullet and secures a fifteen-year mortgage at 6.38% APR and shells out all $40,000 of his savings as a 20% down payment, leaving him zero dollars to invest. This leaves him with a monthly payment of $1,383. Since he has a combined federal and state income tax rate of 32%, he is left with an ...
The Impact of Consumer Credit Counseling on Distressed Mortgage
... Most competitors in the “distressed servicing” space of the mortgage industry either sub‐ service distressed loans serviced by other lenders or service loans owned by investors that have acquired portfolios of distressed loans, e.g., equity funds, hedge funds, etc. Typically, such co ...
... Most competitors in the “distressed servicing” space of the mortgage industry either sub‐ service distressed loans serviced by other lenders or service loans owned by investors that have acquired portfolios of distressed loans, e.g., equity funds, hedge funds, etc. Typically, such co ...
Filed pursuant to Rule 424(b)(5) Registration No. 333
... Because we are a holding company, our rights and the rights of our creditors, including the holders of the notes, to participate in the distribution or allocation of the assets of any subsidiary during its liquidation or reorganization, will be subject to the prior claims of the subsidiary’s credito ...
... Because we are a holding company, our rights and the rights of our creditors, including the holders of the notes, to participate in the distribution or allocation of the assets of any subsidiary during its liquidation or reorganization, will be subject to the prior claims of the subsidiary’s credito ...
Interest
Interest is money paid by a borrower to a lender for a credit or a similar liability. Important examples are bond yields, interest paid for bank loans, and returns on savings. Interest differs from profit in that it is paid to a lender, whereas profit is paid to an owner. In economics, the various forms of credit are also referred to as loanable funds.When money is borrowed, interest is typically calculated as a percentage of the principal, the amount owed to the lender. The percentage of the principal that is paid over a certain period of time (typically a year) is called the interest rate. Interest rates are market prices which are determined by supply and demand. They are generally positive because loanable funds are scarce.Interest is often compounded, which means that interest is earned on prior interest in addition to the principal. The total amount of debt grows exponentially, and its mathematical study led to the discovery of the number e. In practice, interest is most often calculated on a daily, monthly, or yearly basis, and its impact is influenced greatly by its compounding rate.