Advice on Bond Market Data

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Q: Anybody know the data for the bonds market for the last 3 weeks?
I want to know what the treasury bond yields were during the last 3 weeks from April 19th to May 7th. Did the yields rise or decline?

A: http://www.treas.gov/offices/domestic-finance/debt-management/interest-rate/yield_historical.shtml

Q: Where can I check the Singapore bond market investor and issuer mix?
free data base, please.

A: Investors Business Daily and the Wall Street Journal/ Asia would have that.

Q: what is the impact of a lower retail sales data to the bonds, equity and forex market?

A: Bonds move when interest rates are increased or decreased. Interest rates are increased or decreased depending on inflation. Consumer spending makes up about 60% of the US GDP and most probably have a big impact on inflation. Retail sales is one of the key indicators of consumer spending and is therefore linked to inflation -> interest rates -> bond prices, stock prices.

The effects of retail sales is abit more ambiguous on the USD because there are other factors that influence the movement of the USD, such as the price of imported goods relative to the price of locally produced goods. Presently, the US is still running a (huge) trade deficit. And many are expecting a devaluation of the dollar to make the prices of US goods more competitive in the international market, but net-exporting countries (e.g China, India etc) would not like a weak dollar because it would affect their exports…. and the central banks are likely to intervene to ’support’ the USD…. its quite a delicate balancing act…

http://smokingflax.blogspot.com

Q: RISK & CAPITAL: By walking you through a set of financial data for IBM, this assignment will help you better?
understand how theoretical stock prices are calculated; and how prices may react to market forces such as risk and interest rates. You will use both the CAPM (Capital Asset Pricing Model) and the Constant Growth Model (CGM) to arrive at IBM’s stock price. To get started, complete the following steps.

Find an estimate of the risk-free rate of interest, krf. To obtain this value, go to Bloomberg.com: Market Data [http://www.bloomberg.com/markets/index.html] and use the “U.S. 10-year Treasury” bond rate as the risk-free rate. In addition, you also need a value for the market risk premium. Use an assumed market risk premium of 7.5%.

I want to know what krf mean?

A: “Krf” is just a symbol for the risk free rate of return used in the CAPM. Often the “rf” part is subscripted.

Q: market watch states a GREAT DEPRESSION coming (2011)some call it the Tribulation?
What says you?
1. America’s credit rating may soon be downgraded below AAA

2. Fed refusal to disclose $2 trillion loans, now the new “shadow banking system”

3. Congress has no oversight of $700 billion, and Paulson’s Wall Street Trojan Horse

4. King Henry Paulson flip-flops on plan to buy toxic bank assets, confusing markets

5. Goldman, Morgan lost tens of billions, but planning over $13 billion in bonuses this year

6. AIG bails big banks out of $150 billion in credit swaps, protects shareholders before taxpayers

7. American Express joins Goldman, Morgan as bank holding firms, looking for Fed money

8. Treasury sneaks corporate tax credits into bailout giveaway, shifts costs to states

9. State revenues down, taxes and debt up; hiring, spending, borrowing add more debt

10. State, municipal, corporate pensions lost hundreds of billions on derivative swaps

11. Hedge funds: 610 in 1990, almost 10,000 now. Returns down 15%, liquidations up

12. Consumer debt way up, now $2.5 trillion; next area for credit meltdowns

13. Fed also plans to provide billions to $3.6 trillion money-market fund industry

14. Freddie Mac and Fannie Mae are bleeding cash, want to tap taxpayer dollars

15. Washington manipulating data: War not $600 billion but estimates actually $3 trillion

16. Hidden costs of $700 billion bailout are likely $5 trillion; plus $1 trillion Street write-offs

17. Commodities down, resource exporters and currencies dropping, triggering a global meltdown

18. Big three automakers near bankruptcy; unions, workers, retirees will suffer

19. Corporate bond market, both junk and top-rated, slumps more than 25%

20. Retailers bankrupt: Circuit City, Sharper Image, Mervyns; mall sales in free fall

21. Unemployment heading toward 8% plus; more 1930’s photos of soup lines

in addition
Government warns of “catastrophic” U.S. quake (FEMA & the New Madrid Seismic Zone)
The Federal Emergency Management Agency said if earthquakes strike in what geologists define as the New Madrid Seismic Zone, they would cause “the highest economic losses due to a natural disaster in the United States.”

FEMA predicted a large earthquake would cause “widespread and catastrophic physical damage” across Alabama, Arkansas, Illinois, Indiana, Kentucky, Mississippi, Missouri and Tennessee — home to some 44 million people.

Tennessee is likely to be hardest hit, according to the study that sought to gauge the impact of a 7.7 magnitude earthquake in order to guide the government’s response.

Apostle Jess I also think the Tribulation started in October 2008

A: Revelation 22:20 (King James Version)

20He which testifieth these things saith, Surely I come quickly. Amen. Even so, come, Lord Jesus.

Matt 24-25
Job 19
Rev 18-22
1 & 2 Thes
1 & 2 Tim

Q: Can anyone, please, help me with these 2 multiple questions about financial markets?
1. Which of the following tends to issue and invest in longer-term capital market
securities, especially corporate bonds?
a. life insurance company
b. credit union
c. mutual savings bank
d. commercial bank

2. The source of data for a yield curve might be
a. bond yield by issuers over time
b. historical Treasury security yields
c. realized Treasury security yields by time
d. outstanding Treasury security yields by maturity

thank you very much in advance.

A: 1. [ D ]
2. [ B ]

Q: Where can I find historical quotes on capital markets?
This is an assignment for my Financial Management class. The professor wants us to track the capital markets via the Wall Street Journal. She wants us to pick up the WSJ (or comparable sources) every Thursday and record the Wednesday closing prices for the following items: Dow Jones Industrial Average, S&P 500, NASDAQ Composite, Fed Funds Rate, 3 Month T-Bill Rate, 10 Year T-Bond rate, 30 Year T-Bond Rate, Euro per US Dollar, Yen per US Dollar, Rand per US Dollar, and Price of Oil per barrel (Domestic Spot Price). She wants us to record this data from 2/21/07 through 4/25/07. I have copies of the WSJ for the dates 3/15, 3/22, 4/5, 4/12, 4/19, and 4/46. Can anyone direct me to where I can get the rest of this data online? Thanks!!

A: Oddly enough, Yahoo Finance. They offer historical quote prices.

Q: I am now in the market for adopting-out my future child.?
The father is smart, the mother is pretty. No drugs/no diseases.

Serious inquiries only

This is actually a question about how we as society deny realism. I am not having a baby, I’m a single guy, so here is my thesis.

In my humble opinion, the “differences” which lead couple #1 to adopt the scarce baby (who we will call exhibit–A) when couple #1, couple #2 and couple #3 all were seeking the scarce resource.

I am basically clueing in the world that “economics” is the invisible force which enforces glass-ceilings, which enforces racism, and enforces “investor stupidity”–I’m a finance guru–would love to write 30 pages on this subject, and I defecate and vomit every time that I hear of people not realizing that stocks are only a better investment than safer assets, based on nominal data.

The truth is that, yes, overall if you have $100 you can invest in stocks or bonds or real-estate or REIT’s or FOREX or other 4-letter words. Please share your thoughts logically?!

A: You know that this is not even funny. You ask a question that is actually false giving people that are looking to adopt a let down and then you ask some type of other gibberish question that only a rocket scientist could understand. Thanks a lot. (Not) Stop playing with peoples heart strings!

Q: elements in a finite set?
In a survey of 275 employees of a company regarding their 401(K) investments, the following data were obtained.
140 had investments in stock funds.
94 had investments in bond funds.
74 had investments in money market funds.
48 had investments in stock funds and bond funds.
40 had investments in stock funds and money market funds.
38 had investments in bond funds and money market funds.
79 had investments exclusively in some other vehicle.
(a) How many of the employees surveyed had investments in all three types of funds?

(b) How many of the employees had investments in stock funds only?

A: (a)
(140 + 94 + 74) – (48 + 40 + 38) + A = 275 – 79
A = 14

(b)
140 – (48 + 40) + 14 = 66

Q: Early in 2004 the CFO of Falcon was asked to to assess the impact of a proposed risky business?
expansion on the firm’s stock and bond values. The following data was gathered in preparation for
this analysis.

BOND The firm has a single bond issue outstanding. It has a $1,000 par value, a 7% coupon, semiannual interest payments, and 10 years remaining until maturity. Presently, the bond’s required return is 6%. If the proposed risky investment is undertaken the required return would increase to 8%.

STOCK Over the past 5 years the annual common stock dividends have been as follows:
Year Dividend/share
2003 1.91
20021.70
20011.55
20001.40
19991.35

Without the proposed investment, the next dividend (2004) will be $2.09/share and the historic annual dividend growth rate will continue into the future. Currently, the risk-free rate (Rf) is 0.04, the market return (Rm) is 0.13, and the Company’s Beta is 1.1.

The CFO’s research shows that if the proposed risky investment is undertaken, the next dividend (2004) will be $2.15 / share and the annual growth rate of dividends will increase to 13.5%. It will remain at this level into the future. However, because of the increased risk, the Company’s Beta is expected to increase to 1.4.

Armed with this data the CFO is prepared to assess the impact of the proposed investment on the
company’s stocks and bonds.
NOTE: ROUNDING INSTRUCTIONS – YOU MUST ROUND ANY DIVIDEND GROWTH RATES TO 3 DECIMAL PLACES; YOU MUST COMPUTE Ki TO 3 DECIMAL PLACES; PRICES MUST BE IN DOLLARS & CENTS.

a. Find the current value (price) of the firm’s bond.

b. Find the current value (price) of the firm’s common stock.

c. Find the value of the firm’s bond if it undertakes the proposed investment.
Compare this value with that found in part a. What effect would the proposed
investment have on the firm’s bondholders?

d. Find the value of the firm’s common stock if it undertakes the proposed
investment AND assuming the change in Beta, the revised next dividend, and a constant dividend
growth rate of 13.5%. Compare this value to that found in part b. What effect would the
proposed investment have on the firm’s shareholders?

e. Should the firm undertake the proposed investment? Why (briefly)?
NOTE: there is a very specific answer.

A: No, NPV is negative for the investment whien taken risk into consideration.

Q: Questiona on annuity,please solve it, its urgent, if u r gud at it do ans it as soon as possible.?
Question 1
(a) Ten years ago, to supplement their planned retirement, a couple purchased a 25 year flexible savings plan for a target sum of £75,000, which was projected to grow at an annual equivalent rate (AER) of 8%. The insurance company, having reviewed their plan (as they do normally every 10 years), now inform the couple that they will have to increase their monthly premium as the rate of return has turned out to be lower than expected, or face the prospect of receiving a lump sum well below the target.

(i) Calculate the revised monthly premium for the next 15 years in order to meet the target sum of £75,000, based on a projected AER of 6%. (25%)

(ii) What would be the shortfall in the target sum if the couple continued paying their monthly premium as before, but the plan grows at 6% AER for the first 10 years, and then at 5% AER for the next 15 years? (25%)

(b) A householder takes out a mortgage of £75,000 to be repaid over 25 years at an assumed Annual Percentage Rate (APR) of 6.8 %. What would be the reduction in his monthly repayment if £10,000 of the capital were repaid at the end of 10 years, with a part repayment penalty charge of £199 added to the outstanding balance? (30%)

(c) A student loan company will lend you £5,000 now, repayable in 10 years with interest but the repayments will only start after 3 years when you graduate. What will be the end of year annual repayment for the remaining 7 years if the APR on the loan is 3.6%? (20%)

NB: It is better to perform your initial calculations to 6dp to avoid rounding off errors.
Question 2
(a) Using the present value of a fixed term bond, explain the relationship between the price, the par value and the rate of return on this bond. How do you distinguish between a bond that sells at a premium and a bond that sells at a discount? (20%)

(b) A £100 par value bond has a coupon rate of 8.25 per cent, payable semi-annually on 30 June and 31 December. The bond matures on 31 December 2010. Find the quoted price and the market price of this bond on 16 November 2006, given that the yield to maturity was 8 per cent. (20%)

(c) An investor has a portfolio of three assets. The expected returns, expected standard deviations and the correlation matrix of returns are:

Asset Expected Expected Correlation matrix
Return Stand dev A B C
A 2% 10% A 1.0 0.3 0.4
B 3% 12% B 1.0 0.2
C 4% 14% C 1.0
(i) Calculate the portfolio expected return and standard deviation if each asset constitutes one third of the portfolio. (15%)

(ii) Suggest weightings for the assets that would produce a portfolio with lower risk. Explain what risk is and why it is reduced. (15%)
(iii) Trace out the efficient segment for the above data, explaining how this is obtained. What is the expected return on the least risk portfolio? (30%)
Pls solve the question with steps and formuleas, even you know one part plz do solve it.

A: All your home work you want others to solve???

Q: Finance Question about Bonds and stock?
1. Common Products has issued its $.001 par value stock in two separate financing transactions. First, ten years ago, the founder of the company purchased 2,000,000 shares of stock for $100,000. Second, the company went public last year by issuing 4,000,000 shares of stock to the public for a total of $15 million in cash received. Use this information to fill in the following table:

Common shares (par value) ____________________
Additional paid-in capital ____________________
Retained Earnings ____________________
Net Equity $17,500,000

2. A $1,000 face value bond of Acme Inc. pays an annual coupon, carries a coupon rate of 5.75%, has 8 years to maturity, and sells at a yield to maturity of 7.5%.

(a) What interest payments do bondholders receive each year?
(b) At what price does the bond sell?
(c) What is the bond price if the yield to maturity falls to 6%?

3. A 40 year maturity bond with a coupon rate of 8.25% and face value of $1,000 makes semi-annual coupon payments. What is the bond’s yield to maturity if the bond is selling for:

(a) 900?
(b) 1,000?
(c) 1,100?
4. Large Industries annual bonds are selling at 98 (i.e., the price is $980 for the $1,000 bond). There are 6 years remaining until maturity on the bonds and the yield to maturity is 6.25%. Find the coupon rate.

5. Below are the data for two stocks, both of which have a discount rate of 10 percent.

Stock A Stock B

Return on equity 13% 15%
Earnings per share $2.00 $1.50
Dividends per share $ 1.10 $.60

a. What are the dividend payout ratios for each firm?
b. What are the expected dividend growth rates for each firm?
c. What is the estimated stock price for each firm?
d. Which company has a larger market value?

6. You have forecast that United Sports, Inc. will pay a dividend of $1.50 next year (in year 1) and $2 two years from now (in year 2). For dividends beyond two years, you assume they will increase at 5% per year from the prior year. If the discount rate is 11%, calculate a fair price for the stock of United Sports, Inc.

A: Do your own homework.

Q: Is buying treasuries on margin a viable investment strategy?
What could go wrong here? This looks like a great risk / reward opportunity, but what pitfalls exist?

Interactive Broker’s highest margin rate is 1.7% (http://www.interactivebrokers.com/en/accounts/fees/interest.php)

Their margin requirement for US Treasuries with 20+ years to maturity is 9% of the market value of the securities. (http://individuals.interactivebrokers.com/en/p.php?f=margin&ib_entity=llc)

The current yield of a 20 – 30 yr Treasuries is about 4%.

Using this data, I can buy $100,000 of 30yr Treasuries yielding 4% for $9,000 (margin) and a $91,000 loan at 1.7%.

Quick math shows this will yield greater than 20% on margin, after fees.

So why isn’t everyone doing it? Here’s problems I can think of:

1. Interest rates go up, margin rates go up, strategy becomes less profitable.
2. Interest rates go up, market value of bonds goes down, losses are possible.
3. ???

If interest rates go down than no problem. This will mean lower margin rates and higher market values of debt. (Interest rates won’t go much lower, anyway.)

But even with these risks, I think this investment could be much more easily monitored than a similar investment in stocks. This is definitely MUCH easier than managing a stock portfolio expected to return 20%. And I think the risk of loss is a lot less. If the market starts to move against you, then just give up the great return and sell the bonds.

What am I missing here???

Here is the “quick math”
In one year:
4% yield on 100k = $4000
1.7% interest on 91,000 = $1600
total return = 2,400
return on margin is 2400/9000 or > 20%

A: I looked at IB’s website, and to be frankly honest I don’t understand their gabledy gok. Your example above looks great. But my guess is that it simply can’t be done. Most brokers on a stock or commodity account will charge you at least 6% or 7% per annum. There is no way that IB would lend you 91% of the purchase price of the treasuries at only 1.7% interest, even if it is tied to the LIBOR or another index. You are absolutely right, if that were true, then everybody and his brother would be doing it. But then again, call them and tell them that’s what you want to do. If they allow you to do it, then the downside is that you must liquidate the account when the interest should rise to 4%, or you will be in negative territory multiplied by 11. But by golly, please don’t forget to send me a private email, so I also can get on the gravy train.

Oh yes, I almost forgot when interest rates raise that much, your 20 year treasuries can no longer be sold at 100% of face value. How does your example look if you then have to sell at 90% or 85% of face value?

Q: Need help with accounting homework. Please if you know the answers can you help?
An asset was purchased for $60,000 and originally estimated to have a useful life of 10 years with a residual value of $3,000. After two years of straight line depreciation, it was determined that the remaining useful life of the asset was only 2 years with a residual value of $2,000.  Calculate this year’s depreciation using the revised amounts and straight line method.

a) 22,800
b) 11,400
c) 23,300
d) 24,000

On December 31, Reach It Batting Cages Company has decided to trade-in one of its batting cages for another one that has a cost of $500,000.  The seller of the batting cage is willing to allow a trade-in amount of $40,000. The initial cost of the old equipment was $225,000 with an accumulated depreciation of $195,000.  Depreciation has been taken up to the end of the year.  The difference will be paid in cash.  What is the amount of the gain or loss on this transaction?

a) the gain will not be recognized and will be added to the price of the old equipment
b) the gain will not be recognized and will be added to the price of the new equipment
c) the gain will not be recognized and will be subtracted from the price of the new equipment
d) the gain will not be recognized and will be subtracted from the price of the old equipment

An employee receives an hourly rate of $15, with time and a half for all hours worked in excess of 40 during the week. Payroll data for the current week are as follows: hours worked, 48; federal income tax withheld, $120; cumulative earnings for the year prior to this week, $24,500; Social security tax rate, 6% on maximum of $100,000; and Medicare tax rate, 1.5% on all earnings; state unemployment compensation tax, 3.4% on the first $7,000; federal unemployment compensation tax, .8% on the first $7,000. What is the employer’s payroll tax expense?

a) 152.76
b) 91.26
c) 58.5
d) 178.5

During its first year of operations, a company granted employees vacation privileges and pension rights estimated at a cost of $20,500 and $15,000.  The vacations are expected to be taken in the next year and the pension rights are expected to be paid in the future 5-30 years.  What is the total cost of vacation pay and pension rights to be recognized in the first year?

a) 29,500
b) 35,500
c) 23,500
d) 20,500

The Rand Corporation began the current year with a retained earnings balance of $25,000.  During the year, the company corrected an error made in the prior year, which was a failure to record depreciation expense of $3,000 on equipment.  Also, during the current year, the company earned net income of $12,000 and declared cash dividends of $5,000.  Compute the year end retained earnings balance.

a) 29,500
b) 35,000
c) 39,000
d) 45,000

The present value of $40,000 to be received in one year, at 6% compounded annually, is (rounded to nearest dollar)

a) 37,736
b) 42,400
c) 40,000
d) 2,400

The Mansur Company issued $100,000 of 12% bonds on May 1, 2007 at face value. The bonds pay interest semiannually on January 1 and July 1.  The bonds are dated January 1, 2007, and mature on January 1, 2011.  The total interest expense related to these bonds for the year ended December 31, 2007 is

a) 2,000
b) 4,000
c) 8,000
d) 12,000

If $1,000,000 of 8% bonds are issued at 102 1/2, the amount of cash received from the sale is

a) 1,080,000
b) 975,000
c) 1,000,000
d) 1,025,000

When the market rate of interest was 12%, Newman Corporation issued $1,000,000, 11%, 10-year bonds that pay interest annually.  The selling price of this bond issue was

a) 321,970
b) 1,000,000
c) 943,494
d) 621,524

When the market rate of interest was 11%, Welch Corporation issued $100,000, 8%, 10-year bonds that pay interest semiannually.  Using the straight-line method, the amount of discount or premium to be amortized each interest period would be

a) 4,000
b) 896
c) 17,926
d) 1,793

On January 1, 2007, the Kings Corporation issued 10% bonds with a face value of $100,000.  The bonds are sold for $96,000.  The bonds pay interest semiannually on June 30 and December 31 and the maturity date is December 31, 2011.  Kings records straight-line amortization of the bond discount.  The bond interest expense for the year ended December 31, 2007, is

a) 9,200
b) 9,800
c) 10,400
d) 10,800

Cash dividends of $80,000 were declared during the year.  Cash dividends payable were $10,000 and $15,000 at the beginning and end of the year, respectively.  The amount of cash for the payment of dividends during the year is

a) 85,000
b) 80,000
c) 95,000
d) 75,000

Any help is greatly appreciated. I have answered 50 out of 65, but I am stuck on these. Thanks!

A: The answers are
1.C 23,300
2.dont know
3.C 58.50
4.D 20,500
5.dont know
6.dont know
7.C 8,000
8.D 1,025,000
9.dont know
10.dont know
11.A 9200
12.D 75,000

I am 100% sure all the answers I gave you are right, I hope this helps.

Q: 1. The ability to buy stocks and bonds through the internet is generally reffered to as:?
a. e-broker
b. online finance
c. web invest
d. virtual stock market
is option b. right ?

2. A coperate netwpok that grants access to members of that organization as well as authorized outside vendors and suppliers, but not to the general public, is called a(an):
a. cross-platform network
b. B2B network
c. extranet
d. intranet
is d. the right answer ?

3. The term for a bogus e-mail that asks you to verify or update personal information , such as your SSN for your bank , is :
a. e-scamming
b. snagging
c. data mining
d. social engineering
is option d. right or a.
Thanks !!!

A: Ill agree with the guy above me…although Question three’s answer is called phishing..not e-scamming

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