Getting started in bonds 2nd edition phần 7 ppsx

... discussed in Chapter 4, mortgage-backed bonds (MBSs) possess negative convexity. As interest rates drop and other bond prices are increasing, these bonds in- crease in value at a slower rate. As interest ... The nuance involved in predicting future in- terest rates comes from intuiting which indicators will exert the strongest in uence on the markets, which are best correlated...

Ngày tải lên: 09/08/2014, 16:21

... Hill Getting Started in 401(k) Investing by Paul Katzeff Getting Started in Security Analysis by Peter J. Klein Getting Started in Global Investing by Robert P. Kreitler Getting Started in Futures ... Gelb Getting Started in Online Investing by David L. Brown and Kassandra Bentley Getting Started in Online Brokers by Kristine DeForge Getting Started in...

Ngày tải lên: 09/08/2014, 16:21

... falling as interest rates rise. This is because interest rates tend to rise when there is in a- tion in an attempt to keep in ation from getting out of control. Most bonds principal and interest ... buy savings bonds at regular recurring intervals by debiting your personal checking or savings account. You can also manage your savings bond inventory on your computer using the web site...

Ngày tải lên: 09/08/2014, 16:21

... distinction between top-tier high-yield bonds and low-grade high-yield bonds. In the CORPORATE BONDS 64 0.00% 2.00% 4.00% 6.00% 8.00% 10.00% 12.00% 1 970 1 971 1 972 1 973 1 974 1 975 1 976 1 977 1 978 1 979 1980 1981 1982 1983 1984 1985 1986 19 87 1988 1989 1990 1991 1992 1993 1994 1995 1996 19 97 1998 1999 2000 2001 Year Percent Investment-grade High-yield FIGURE ... viab...

Ngày tải lên: 09/08/2014, 16:21

... the unsuspecting individual investor. RISKS OF INTERNATIONAL INVESTING As mentioned at the beginning of our discussion about international investing, when you invest in foreign bonds (or stocks), ... 80.23 SELF 79 .75 69.64 1 17. 70 60.41 15.84 12.99 CHF 1.5114 2.2634 SELF 1.2464 0.9940 0.8680 1.4 671 0 .75 30 0.1 974 0.1619 GBP 0.6 677 SELF 0.4418 0.55 07 0.4392 0.3835 0.6482 0.33 27...

Ngày tải lên: 09/08/2014, 16:21

... High Yield Master Yield Master Index II Index II YTD –5. 57 –5. 37 1 Year 7. 66 –4.36 1 Month –6. 27 7. 74 3 Year –8.22 –2.10 3 Month –5.89 –6.98 5 Year –1. 27 1.14 6 Month –5. 57 –5. 37 10 Year 6.10 6.28 Quarter-End ... issue with a sinking fund matures in 8 years, but the sink- ing fund is used to retire $250,000 of the issue in 5 years, $250,000 in 6 years, and another $250,000...

Ngày tải lên: 09/08/2014, 16:21

... “ebb”: ending value minus beginning value divided by beginning value. For example: (Ending – Beginning) ÷ Beginning = % change (86 – 89) ÷ 89 = – 3. 37% handle trader lingo for the part of the bond’s ... × . 072 5). $72 5 a year in interest, in other words, ( $72 5 ÷ 2) or $362.50 per semiannual interest payment. Corporate bonds use a 365-day year, so this bond accrues $1.986 in inte...

Ngày tải lên: 09/08/2014, 16:21

... moving average FIGURE 13.5 Moving average. FIGURE 13.6 Rising trend line. and sending interest rates higher. You begin to get excited about selling your bonds and then buying them back when interest ... a drop in the savings rate is bullish for bonds because it is interpreted to mean that the econ- omy has slowed, causing people to dip into their savings. Disposable income = Personal in...

Ngày tải lên: 09/08/2014, 16:21

... working for you as soon as possible is the power of compounding. When you invest in bonds, the interest you earn can be reinvested and begin earning you interest. Then the in- terest on your interest ... mutual fund investors are bailing out in droves it can be a signal to buy. Contrarian investing involves looking at what the masses are doing, and doing the opposite. Since the idea i...

Ngày tải lên: 09/08/2014, 16:21

... 177 – 178 coupon, 173 – 174 credit rating, 174 – 175 duration, 176 – 177 of economic indicators, 186 hedge funds, 243 in uences on, generally, 78 , 171 – 172 interest rates, 175 maturity, 172 prediction of, 176 Wall ... 250 Income: decreasing, 75 79 monthly, 241–242 personal, 184, 201 Indenture, 65–66 Index of Coincident Indicators, 2 07 Index of Lagging Indicators, 2 07 Index...

Ngày tải lên: 09/08/2014, 16:21