Face Value College Essays Samples For Students

A bond is a long-term debt instrument used by firms as well as governments to raise additional capital to finance their projects. A bond has a face value which must be repaid to the bondholder at the maturity of the bond. It also involves periodic payments of interest to the holder at a stated coupon rate. Interest on a bond is an annuity paid until the bond matures while the face value is a single payment at the maturity of the bond (Scott and Brigham 241). The value of a bond is therefore given by the following formula:

Where

B0 = current value of the bond (at ...

Introduction to Convertible Bonds

Convertible bonds consist of the bonds that are easily converted into the stocks. These convertible bonds are issued by the company and like any other normal bonds it has maturity date and face value. The convertible bondholder has all the rights of converting the bond into the predetermined share numbers of the respective company in an identified period. The factors influencing the bondholder converting or not depend on the stock interest rates and prices.

Contract conditions and Payoffs

The convertible bonds market conditions are not standardized and hence making it differ depending on every contract case. The maturity date being one of the ...

The image called the adoration of Magi is a painting that was put forth by one talented and renowned painter named Sandro Botticelli, in the year of 1475. In the subsequent years, due it sentimental and cosmetic value, it has been housed in the Uffizi of Florence. Due to the prowess and the magnificence of the painter, he was commissioned to do seven more incarnations or versions of the Adoration of Magi. From the face value of the painting, one easily spots and sees the various and numerous characters that are present in the painting. For instance, all the members ...

Valuation

Introduction
One credible website that investors can use to find the present value of stocks and latest news about bonds being traded is www.nasdaq.com.

Valuation and Time Value of Money

Money has worth associated with time. A dollar today is worth more than a dollar in coming year. This is the foundation for the concept of time value of money. In order to make financial decisions, the concept of time vale of money is very essential. The concept of time value of money has many uses, starting from creating schedules for disbursing off loans to judgements about purchasing new assets. Hence in finance, no concept ...

In Douglas Rushkoff’s article “Bart Simpson: Prince of Irreverence,” he refers to the FOX sitcom The Simpsons as “the closest thing in America to a national media literacy program.” (Graff et al, p. 241) Within this program, the Simpson family deconstructs memes and cultural landmarks of television at a breakneck pace, holding a lantern up to the way that media works and displaying it for all to see. The Simpsons educates its viewers to view media with a more critical eye due to its irreverence and ability to recognize and lampoon the structure and politics of the media industry. In this paper, ...

What is a 'Ponzi Scheme', how it Works and How does it Collapse?

A Ponzi scheme represents a fraudulent investment trick where the promoter pays return on investment to previous investors from the money invested by new investors instead of the money earned through profit or gain. Customers are promised to receive higher investment returns, compared to market averages, with no risk at all since they will be paid from the money provided by new clients. This investment scam requires an ample flow of clientele for powering the whole fraudulent system.
A Ponzi scheme comes into existence when the promoter is able to cllect initial investment funds from a person. This scheme ...

Abstract

Individuals and business organizations with investment potential or the desire to become investors often find themselves having limited capital to undertake the desired projects. Additionally, most investors are often confused when carrying out analysis to assess the risk of the various portfolio in which they intend to invest their resources. The governments have developmental projects that require more financial resources than their revenue due to budget deficits. Having excess money in the circulation is dangerous to an economy because it results in excess aggregate demand that produces inflationary gaps. As such, the government must regulate money supply to ensure ...

QUESTION A

Credit Default Swap
It is a financial instrument lenders use to hedge default risk. The lender acquires a CDS and pays premiums to the CDS seller who takes the default risk (Lasher 200). If the borrower defaults, then the CDS seller pays the par value of the loan to the lender. The CDS seller also pays the protection buyer accrued interests on the loan during the intervening period.

Cash flows in case of no default

Annual CDS premium = 4% × 1,000,000 = $40,000
Quarterly payments = 40,000/4 = $10,000
A will pay quarterly CDS premiums to B for the three years. At the end of ...

Social media has now become the medium for connecting to friends, family and even people from the workplace; this has become more so now that access to social media is increasingly mobile. Statistics show that 76% of internet users are on social media and 70% logon to Facebook at least once a day . People between the ages of 18-40 use social media more than others. But why do people spend so much time on social media? What does excessive involvement in virtual social networking mean for the actual social lives of people? This essay will argue that while social ...

The popular American show The Colbert Report is considered a crucial satire encounter in recent years. Watching the news satire and late-night talk show on Comedy Central triggered extra interest in satire and how it is employed in contemporary American society to communicate current issues of interest. Focusing on Stephen Colbert, its fictional anchorman, the show mainly satirized political programs driven by conservative personalities. Appreciation of this show as a satire and parody encounter is used as a point of departure for this construction, which explores how satire works in a socio-political setting as that presented by the show.
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Introduction

In 2013, food adulteration scandals in various parts of world including Europe were highlighted. These scandals proved large quantities of horse and in some cases pork meat in beef products across some major food chains including TESCO. While horse or pork meat is not considered to be harmful for health, however each is considered a taboo food item in different cultures. Additionally, though certified horse meat is often served on menu, the authorities were concerned about the health of horse meat used and the possible contamination of phenylbutazone or "bute", a drug given to horses ...

Question 1: Expected return of the bonds

Face value = $1,000
Time to maturity = 1 year

Since the bonds have no coupon interests the price is the present value of the face value.

P = F(1+r)n
n = 1
Therefore, r = FP – 1
P = $800
r = 1,000800 – 1 = 1.25 – 1 = 25%
P = $950
r = 1,000950 – 1 = 1.0526 – 1 = 5.26%
P = $1000
r = 1,0001000 – 1 = 1 – 1 = 0

Question 2

r = FP – 1
0.2 = 1000P – 1
1000P = 1.2
P = 10001.2 = $833.30
The above price reflects the intrinsic value of the bond. The bond does not pay coupon interest hence it is selling at a discount. If investors require a return of 20%, the bond must be selling at a price of $833.30 ...

Inequality

Inequality

Inequality is a concept related to poverty but covers a wider scope. It does not focus on the poor alone but to the poor and all other groups in society relative to the entire population.
Inequality is also about fairness. It is about how fairly a society distributes its income or wealth to its members, and how well it attends to the needs of its people and their welfare.
“Equality, like fairness, is an important value in most societies Inequality can be a signal of lack of income mobility and opportunity―a reflection of persistent disadvantage for particular ...

A1) An interesting and very important financial news in the last month has been of the Fed raising interest rates for the first time in nine years. This has meant that the short term rates have risen from near zero percent. This decision by Fed is a positive signal about the strength of the economy (Lee, 16 Dec 2015).
A2) The article titled ‘Biology of Risk’ by John Coates talks about how the body reacts to distress and uncertainty, making us more vigil. But as the uncertainty becomes less or the body becomes accustomed to the risk, the response ...

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Introduction

The concept of corporate finance lies in time value of money and is often regarded as the foundation of the corporate strategy as well as the financial management. The concept of net present value is applied in a number of financial decisions and the time value of money is dependent on the same principle. Therefore, this paper will be focused on the importance of the time value of money based on the concept of net present value. This concept is clarified by using the example of bond valuation as mentioned in the question. However, this paper is ...

Investment Management

Investment Management

Introduction

This paper entails a discussion of two key principles investment management that are currently in play in today`s financial markets. The first part of the paper entails a discussion on the Capital Asset Pricing Model and its subsequent application to a real life situation. The second part of the paper entails a discussion on assessment of the performances of two respective mutual and pension funds that are invested in Argentinian junk bonds.

According to Levy (2011, pg. 55), the Capital Asset Pricing Model (CAPM) is used in the determination of the required rate of return of various risky assets such ...

Human beings have always been social creatures. Often, religious organizations represent the fundamental level at which a society operates and instills the values of that society in its members. As Girard noted, religious ritual and sacrifice has played an important role in the prevention of violence in all human societies, both prehistoric and contemporary (45).
In the discussion of human culture throughout history, there has always been a marked difference between the social norms that highly religious, rural societies adopt and those of more secular, urban societies. While urban societies are noted for their ability to produce technological progress and ...

International Business Machines

Problem 1:

These ratios judge short term payment ability of the entity. Generally two measures of Liquidity Ratios are used by analyst to adjudge the liquidity position of the company:
- Current Ratio
- Quick Ratio/Acid Test Ratio
1) Current Ratio: Calculated as ratio of Current Asset and Current liability, this liquidity ratio is considered to be true indicator of a firm’s liquidity. The average industry current ratio is 2:1.
- Current Ratio: Current Assets/ Current Liabilities( Robisnon, 2011, pg 142)
2) Quick Ratio: A more stringent measure of liquidty assessment, quick ratio is ...

In Douglas Rushkoff’s article “Bart Simpson: Prince of Irreverence,” he refers to the FOX sitcom The Simpsons as “the closest thing in America to a national media literacy program.” (Graff et al, p. 241) Within this program, the Simpson family deconstructs memes and cultural landmarks of television at a breakneck pace, holding a lantern up to the way that media works and displaying it for all to see. The Simpsons educates its viewers to view media with a more critical eye due to its irreverence and ability to recognize and lampoon the structure and politics of the media industry. This is accomplished ...

Identity Conflicts never begin as identity conflicts

Literature Review:
In ‘The Myth of Global Ethnic Conflicts’, John Bowen argues that although conflicts may at face value appear to have been simmering for hundreds of years under the surface, this is not always the case as can be seen in the former Yugoslavia conflicts.
In ‘Ethnic and Nationalist Violence’, Brubaker and Laitin argue along similar lines to Bowen but they also delve into the problem with far greater detail demonstrating that perceptions of violence may not always be what they seem or what they appear. This is further reinforced by the fact that the former ...