Principles of Finance - Essay Example

Only on StudentShare

Extract of sample
Principles of Finance

The effective annual rate computations below show that issue 7.375s19 has generated an effective annual rate of twenty one and 852/100 percent. The issue that generated the lowest effective annual rate is issue 7.375s20 which generated a very low seven and 37.5/100 effective annual rate.
Thee lowest annual percentage yield, this is similar to Effective Annual Rate, comes from issue 7.375s20 with the annual percentage yield of only seven and 37.5/100. he yield to call resulted to the following computations.
There are many mathematical business tools that finance uses to help us in our decision making processes. Some of the tools used are the Annual Percentage, the Period Rate and the Effective Annual Rate. The many computations below will show how they are made useful.
The annual percentage rate is computed by multiplying the periodic rate by the number of periods. For example 10% quarterly is really equal to 40%. The annual rate is stated as the yearly cost of a mortgage that includes interest, Mortgage insurance, and the origination fees which is shown in percentages. Based on the above computation, issue 7.375s20 has annual percentage rate of 7.375 percent. The issue 7.375s19 was computed to generate annual percentage rate of 14.75 percent. The next issue, 8.250s28, when computed had generated the annual percentage rate of 8.25 percent. The next issue, 6.730s17 when also computed generated annual percentage
Periodic rate ...Show more

Summary

There are many tools used analyzing bond issues. One issue is the Annual Percentage Rate. The Computation below shows that issue 7.375s19 generated the highest Annual Percentage Rate of 14.75%. This is very much higher than the annual percentage rate of issue 8.250s28.
Author : lrice
Principles of Finance essay example
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the essay on your topic
"Principles of Finance"
with a personal 20% discount.
Grab the best paper

Related Essays

Principles of Finance
As the report declares the evaluation of the purchase of the equipment facilities for the Dynamo project should be made on the basis of cost-benefit examination to prepare most favorable progress plans. Cost refers to the worth of assets utilized in the implementation of the equipment, starting from transportation, installation and maintenance. 
7 pages (1750 words) Essay
Principles of Finance
It denotes the combination of equity and debt finance utilised by a corporate entity to finance its assets. While some companies are unlevered, others can be financed partially thorough equity and partially through debt. The determination of the ratio between equity and debt finance is known as the financing decision.
8 pages (2000 words) Essay
Principles of finance
“In a world with corporate taxes, Modigliani and Miller’s view is that a company should issue as much debt as possible. Why is this advice not followed by companies?”A debt is often an obligation owed by a debtor to a creditor, who is usually the second party.
6 pages (1500 words) Essay
Principles of Finance
By focusing on the free cash flows, Caledonia would be able to better analyze the cash flows and the timings of the cash flows. Another reason for focusing on cash flows is that the company might be showing positive accounting profits but it might not be having positive cash flows and therefore it is more important to use the cash flows instead of accounting profits in making the capital budgeting decisions.
6 pages (1500 words) Essay
Essay on Principles of Finance
Overview of Financial Heath General Motors is an American Auto-maker which recently filed its bankruptcy due to its instable financial condition. General Motors was among the top auto-makers of America, but due to issues like hike in the prices of the commodities such as raw materials and labor, government pressure towards production of fuel efficient cars, critical issues of corporate governance, etc, the company filed its bankruptcy in the court of Manhattan.
4 pages (1000 words) Essay
Barclays Bank: Viewing Principles of Finance at Work
It was established in the year 1690. It provides a major monetary service in sectors like private banking, corporate and investment banking, prosperity and asset managing and credit card facilities. It currently operates in more than 50 countries and provides employment opportunities to around 140,000 people worldwide.
10 pages (2500 words) Essay
Principles of Finance Essay
The BIS is the world's oldest international financial organization that serves as a bank for central banks. The IMF is an organization that promotes international monetary cooperation, exchange stability, and orderly exchange arrangements to foster economic growth.
4 pages (1000 words) Essay
FIN 300 - Principles of Finance for the Private Sector 1-8
Current assets are more liquid than noncurrent assets. Retailers link the customers and wholesalers. Most fast moving consumer goods are handled by retailers for example, supermarkets. Retailers need a strong liquidity to help pay for the fast moving goods which
4 pages (1000 words) Essay
PRINCIPLES OF FINANCE
b) The $18 million loan should not be included in the cash flow table because it refers to an out flow in the previous year. It can only be used during the calculation of the Net Present Value since it contributes to the initial
6 pages (1500 words) Essay
Principles of Finance
In the net asset valuation in this scenario, the value of each asset at which they might be sold will be obtained without respect to the whole company (Germidis, et al., 2010). a) When there is a reduction in tax, there comes a motivation factor to investors.
4 pages (1000 words) Essay
Get a custom paper written
by a pro under your requirements!
Win a special DISCOUNT!
Put in your e-mail and click the button with your lucky finger
Your email
YOUR PRIZE:
Apply my DISCOUNT