Essays on Fixed-Income

Article 1: The case for minimizing risk in your bond holdings by William Bernstein

There is always a trade-off between risk and return. Investors are rational and risk-averse hence, they require additional returns when the risk involved in any investment is high. In this article, William Bernstein explains how investors can reduce the risk in their investments in bonds without necessarily interfering with the expected returns on the bonds. One of the risks affecting bondholders is the interest risk. Changes in interest rates affect the return on bonds. When interest rates rise, bondholders lose since the prices of bonds fall. This is because the bond will be paying a lower coupon interest compared ...

Investment Options Recommendations

Introduction This paper entails an analysis and review of the available investment options in companies that fall within the start-up economy category. This analysis is based on the specific investment needs of a client who wishes to invest some of his capital in a non-publicly owned firm. The client is 50 years old, and this implies that his investment risk profile is not as high as that of relatively younger investors. In this regard, this paper will advise the client on the stock investment options that are available in his preferred company profiles. Accordingly, this paper will focus on the ...

Intel Inc

Module 1 1) What are the maturities on Intel’s Long-term debt?

2) What are Intel’s projected obligations on Long-Term Debt and Payments due by period? 3) What is the par or stated value of Intel’s preference shares? $0.001 per share 4) What is the par or stated value of Intel’s ordinary shares? $0.001 per share 5) What percentage of Intel’s authorized ordinary shares was issued at Dec 29, 2012? = (4944/10000)*100 =49.44% 6) How many ordinary shares were outstanding at Dec 29, 2012, and Dec ...