Abstract This paper discusses bonds, a debt sold to the public in denominations of $1,000. The paper defines and explains the roles of the three key players in the bond market, the insurers, the underwriters, and the purchasers. The paper also examines the different kinds of investments available to the investors such as fixed income treasury or municipal bonds. Lastly the author compares the bond market to the stock market and discusses how bonds are often sold in the stock market.
From the Paper "There are a number of fixed-income investments available on the market for both individual and institutional investors to invest in, such as government bonds, municipal bonds, corporate bonds, and other debt securities. As stated earlier, governments are the biggest issuer of bonds, particularly the U.S. government which makes up a significant portion of the market. U.S. issued debts are known as treasuries, treasury bonds (T-bonds) are debt issued to the public with a fixed-interest rate and has a maturity date of more than 10 years."
Abstract The paper discusses a research proposal to investigate whether a lack of social bonding is directly or indirectly related to juvenile delinquency. The paper suggests that activities or lack thereof may contribute to the likelihood that a youth will engage in violent behavior. The paper proposes that a lack of social bonding may be partly to blame. To achieve the goal of uncovering the effects of social bonding on juvenile delinquency, the paper proposes various questions to determine the cause.
Outline:
Introduction
Problem Statement
Theoretical Framework
Methodology
From the Paper "Juvenile delinquency is an increasingly trying and troubling problem within the United States. Studies show children that lack social bonding often join gangs, resulting in juvenile delinquency (Thornberry, Krohn, Lizotte, et al, 2003). The author's note adolescents and young adults stated they joined gangs for many reasons however, not necessarily a lack of social bonding. Rather, from their studies one may assume many individuals joined gangs because their family members or siblings were part of a gang (Thornberry, Krohn, Lizotte, et al, 2003). Even more report gang membership allowed them an opportunity to bond with other people in the gang. However, it is important to note that just as many people report they joined a gang to realize a sense of self, to bond with people because they had not the opportunity before to bond with others "
Abstract This paper relates the characteristics of stocks that make them difficult to value. The author points out the characteristics of bonds that allow for a more precise valuation. The paper explains the terms involved in a discussion of long-term bonds.
From the Paper "Stocks are difficult to value; to some extent their value is subjective. The value relates to the perceived strength of the company as measured by its financial condition management expertise distribution network market reputation effectiveness of its advertising campaign strength or weakness of its competitors product mix patents owned and future prospects. Most of these factors are highly subjective in nature and the way in which one investor views the combination of factors that go into determining the value of a ..."
Abstract This article looks at the social control theory of social bonds. The writer studies the theory of social learning within the context of neglected babies. The writer examines how such a situation affects their behavior as teenagers and adults. In this paper, the writer also discusses sources of human behavior.
From the Paper "What is the source of human behavior? Why is it that when babies become children and children become teenagers their behaviors can differ so greatly from one another? The theories regarding the source of teenager behavior and the scope of their activities however acceptable or deviant they may be, have been central to the disciplines of juvenile psychology, sociology and criminology for decades. When babies are born and deprived from love and contact from loving ... "
Tags: deviance, criminology, aggression, psychology, sociology, theory, Bandura, Hirschi, social bonds, social learning
Abstract This paper looks at bonds, a splitting of a very large loan into many easily transferable notes or units. It discusses how each bond is a long-term investment, which also bears an interest and how, after being issued, the bond is sold to the investing public with the result that there are multiple bondholders participating in one loan. Through an analysis of the different types of bonds available, it attempts to advise on the right bond for the right situation.
Outline
Abstract
Introduction
What are Bonds?
Issuance of Bonds Liquidity of Bonds U.S. Government Bonds Municipal Bonds Corporate Bonds Zero-Coupon Bonds Conclusion
From the Paper "Bonds have never been as attractive to investor as stocks, and in recent years bonds look plain and confusing. Who needs them? And while stocks have averaged 11% annual returns over time, bonds have dropped down to less than 6%. The happened in 1998, when bonds posted an 8.6% total return and stocks took 26.7%. It was the fourth straight year of 20%-plus gains for the S&P 500 index (Morgan Stanley). Well, don't be fooled. Stocks won't always give you such great returns. And it's often the case that when stocks go down, bonds go up, making them an excellent source for diversifying your portfolio. In the third quarter of 1998, the S&P 500 dropped by 11% due to fear of a global economic slowdown."
Abstract Bonds are IOUs extended from one entity to another entity as money in exchange for a loan. This paper explains that the three major types of bonds are U.S. government bonds, corporate bonds, and zero coupon bonds. Within these three major categories exist many other, major subcategories. It shows how a secure U.S. Treasury may be appropriate for one kind of investor, while a high-risk, callable corporate bond might be appropriate for another. The writer points out that most investors will seek, ideally, a diverse portfolio among a variety of these different types of securities, with varying levels of risk; a high risk gives an investor a higher yield than a low risk. The paper explains that bonds can be purchased through brokers and are traded in the open market. It concludes that the value of the bond varies according to the interest rate, although in general, government bonds are less risky than corporate bonds.
From the Paper "According to economist Kevin Heckinger (2002), while the average investor in these MSNBC-happy watching times may feel that he or she knows about the basics of investing in the stock market, many people remain puzzled as to what bonds are and the ins and outs of investing in various forms of fixed income securities. The average investor may have been issued a bond as a present for graduation, or received a bond as a prize in a contest, or gotten a U.S. Savings Bond as a 'reward' or incentive for buying an appliance, perhaps. But the nature of what a bond means, as opposed to a share in a publicly traded company still remains obscure in public parlance."
Abstract This paper analyzes Michigan's economy, attributing the wane to the decline in the motor-vehicle industry and low tax rates. It also discusses bond ratings, and Michigan's present bond rating of AA - which is the middle high range bond rating offered due to the changing economic climate. The paper reviews this rating by studying the demographics, unemployment rate, income and administrative structure of Michigan as well as Michigan's major sources of income and expenditure.
Table of Contents:
Executive Summary
Demographics
Population Trends and Growth
Michigan's population breakdown by age is as follows:
Michigan's population breakdown by race is as follows:
Educational Attainment
Unemployment, and Income
Income
Unemployment
Housing
Administrative Structure
Political Affliation in Michigan's Administrative Structure
Current 2008 Economic Agenda
Job Creation
The No Worker Left Behind Program
Family Health Care
Education Spending
The Michigan Legislature
Government Shut-Down
The Budget Process
Key players in the budget process include:
Development of the Executive Budget
Legislative Action
Governor Signs Bills And/Or Vetos:
Budget Revisions
The impact of economic and political issues on the Budget Process:
Revenues
The Major Sources of Revenue:
Federal Revenue
Sales and Use Taxes
Income tax:
Non-tax Revenues:
Other taxes:
Transportation Revenues:
Business Taxes:
State Education Tax:
Expenditures
Expenditures between FY 2006 and FY 2005
Cause of Budget Problems
Education expenditure
Public welfare expenditure
Hospitals expenditure
Health expenditure
Highway expenditure
Police expenditure
Corrections expenditure
Natural resources expenditure
Parks and recreation expenditure
Government administration expenditure
Utility expenditure
Economy
Credit Rating
Employment
Debt Analysis
Historical Levels of Michigan State Government Debt
Michigan Government Debt Outstanding
State Government Debt in Michigan Compared with Other States
Economic Analysis
The Economy
Unemployment
Gross Domestic Product
Contributors to the Economy
Museum Industry
Hunting Industry
Michigan Department of Natural Resources
Bond Rating and History
Bond Ratings and Their Definitions
Factors that Affect Credit Rating:
Economic Factors
Debt/Issue Structure
Financial Factors
Management/Structural Factors
Standard & Poor's and Fitch Classify Bonds as Follows:
Moody's system
Michigan's Bond Rating
Financial Impact of Lower Bond Rating
Table One--2005 Full Time Year Round Workers in Michigan by Educational Attainment
Table Two--Michigan Gubernatorial Election 2002
Table Three--Michigan Gubernatorial Election 2006
Table Four--Total State Revenue Source FY 2006
Table Five--2006 General Expenditures by Function
Table Six-- Total Expenditures between FY 2006 and FY 2005
Table Seven--Percentage Difference of Expenditures in FY 2006 and FY 2005
Table Eight--2006 Worst State Unemployment Rates Compared
Table Nine--Yearly Debt Outstanding Between 1979-2006
Table Ten--2006 Specific Debt Outstanding
Table Eleven--State Rankings of State Debt Per Capita 1980-2005
References
From the Paper "Michigan's budget problems are largely due to revenues not keeping up with the cost of maintaining programs and policies. Most of the budget goes towards organizations or individuals that provide services - a little over 80 percent supports K-12 education, community colleges and state universities, cities, counties, Medicaid, community mental health programs and corrections. Trying to reduce spending will mean cutting these programs. Since revenue growth has exceeded expenditures, the state budget demands structural change. Michigan used their reserves to maintain current programs and policies, such as, education, health and corrections - the economy has declined, but spending pressures continues to accelerate. Since Michigan's state sales tax rate is low, difficult to fund major projects and programs. Half of the school aid fund is covered by sales tax."
Abstract This paper analyzes the concept of junk bonds. It looks at the inherent risk of junk bonds, what factors determine whether a bond will be labeled a junk bond or an investment-grade bond, why they must offer higher returns to entice customers, and their viability on the investment front. The paper concludes with an overall positive, but cautious, assessment of junk bonds.
From the Paper "The stock markets are the financial hubs of a country where businesses thrive on the value of their reputation and financial prowess. It is also a place where the investors are often duped by companies that try to create artificial value for themselves. Junk bonds are a consequence of this trend of many companies, which try to attract value to their bonds through false propaganda and enticing dividends. Similarly, the price of a share of even reputed companies depends on a variety of factors and hence, one cannot expect a steady price for a stock no matter how strong the credibility of the company is. This inherent unpredictability in the stock markets required for some kind of official standardization of the bonds so that investors could be forewarned about the performance and risk factors of a particular bond."
Abstract Investors require a return to compensate for any uncertainty associated with cash flows associated with investment. This paper examines how, in the world of investment, all investors walk the line between greed and fear and how stocks and bonds are suitable investments for most individuals.
Outline
Advantages of Buying Different Types of Bonds Rate of Return of the Bonds Risk of Bonds Interest Rates and Bonds
From the Paper "Most investors want to earn the highest possible yield and growth rate with the lowest possible risk. But maximum profit and low risk are not compatible attributes. As a bond investor, they must be aware of relationship between the risk and potential reward, or opportunity. Risk in its many forms will determine whether an investment is appropriate or not and will it earn the yield you wanted. The different kinds of bond risk are: (1) interest rate risk, (2) default risk, (3) business risk, (4) marketability risk, (5) inflation risk, and (6) event risk."
Abstract This paper examines how junk bonds are a consequence of the growing trend of many companies to attract value to their bonds through false propaganda and enticing dividends. It looks at how, although they carry a definite amount of risk associated with them, if invested wisely and prudently, they can also return profits that will be many time higher that the "safer" bonds. It also shows how experts believe that stock market crashes and scams, which are often attributed to the junk bonds, are, in fact, due to the investor's lack of concern for risk in the mad rush to make money.
From the Paper "The concept of junk bonds becomes relevant when we consider the inherent risk that the share market offers to the customer. According to financial statutes, every bond has what is called as the default risk associated with it. When an issuer of the bond is not able to pay timely dividends to the shareholders, there arises a situation where the company is said to be in default. The bonds that are issued by the US government or federal institutions are said to be relatively free of default risk since the government guarantees it and so the investor can be assured that his money is safe. On the contrary, for the shares of non-federal agencies or private companies, the inherent risk is gauged by what is known as credit ratings, which are issued by independent and competent companies."
Abstract The paper evaluates the effects of neonatal hearing loss on the quality of bonding with hearing parents, bonding in general, bonding of parents to special needs children, the interaction of hearing parents with the deaf infants and the psychosocial stressors on parents with special needs children. The paper reviews the procedures surrounding universal newborn hearing screening, its effectiveness and the satisfaction parents feel with currently used hearing screening processes.
From the Paper "Definitions are often helpful before a full literature review is undertaken. For the purposes of this study, we shall consider congenital permanent hearing loss to be defined as impairment > 40 decibels (dB) at the time of screen, relative to the threshold level. This level is considered significant in that hearing loss at this level is associated with greater than average deficit in verbal compared with non-verbal abilities up to 25 intelligence quotient (IQ) points (Yoshinaga-Itano, 1998)."
Abstract Both stock prices and bond prices in the securities markets in the United States tend to be volatile. The volatility of these markets creates risk for the investor. Further, the stock market and the bond market frequently respond differently to financial, economic, and political stimuli. This research compares and contrasts the stock market and the bond market in the United States from the perspective of the investor. The assessment discusses advantages and disadvantages of each class of securities. The paper includes graphs and tables.
From the Paper "Thus, while bond price volatility is in part a function of market interest rates, bond price behavior is also a function of coupon interest rates and term-to-maturity periods as functions affecting bond yield. Two approaches to yield determination for bonds predominate?current yield and promised yield. A bond's current yield is the amount of current income that a bond provides (annual interest) relative to its prevailing market price. Promised yield, by contrast, includes both interest income, price appreciation or depreciation, and total cash flow received over the life of the instrument in the bond valuation process. The promised yield is a function of the present value concept. Thus, the promise yield of a bond, in effect, is the internal rate of return of the bond (Gitman, Joehnk, & Pinches, 1995)."
Abstract This paper takes a look at corporate bonds and preferred stocks, defining both types of investments, how they differ and their strengths and weaknesses. The paper examines and explains the many factors that must be considered before one can wisely make a decision regarding an investment in corporate bonds and preferred stocks, but suggests that both bonds and preferred stocks are considered relatively safe investments and provide slow, steady growth for investors. Next, the paper describes common stocks and how they work as an investment as well as the advantages and disadvantages of this type of investment. Finally, the paper takes a look at the accounts receivable and inventory aspects of financial management and explains their importance to both the management process and to investors.
Table of Contents
Common Stocks
Accounts Receivable and Inventory
From the Paper "Preferred stocks, a class of a company's equity, are cheaper to buy and more liquid than corporate bonds. Companies issuing preferred stocks often yield 8 percent or more. Preferred stocks are closer in kin to bonds than to common stocks. They pay a fixed dividend, their price tends to stay near their par value and they usually have no voting rights. They are called preferred stocks because they stand in line ahead of common shares when it's time to pay out dividends or liquidate the company. However, preferred stockholders do not get their dividends until the bondholders have been paid. Because of this, preferred stocks are slightly more risky than bonds issued by the same company; the stockholder is paid a little extra for assuming that risk. Large corporations and banks encourage preferred stocks."
Abstract This paper discusses which certain uncertain components, along with which definite decisions, factor into determining whether the bond and stock market remains stable, disintegrates or crashes or moves forward. The paper begins by defining stocks and bonds and then discusses the political, economic and societal factors that affect it. The paper reflects on past changes in the market and analyzes historical stock market crashes.
Table of Contents:
Introduction
Certain Uncertainties
Past Reflections
Facts and Factors
Market Actions
Conclusion
From the Paper "Along with studying past crashes, market experts also analyze current economic components to check the market's pulse. The goal of "Fundamental Analysis," (assessment of underlying forces affecting economy's health) may include evaluating "financial data, management, business concept and competition. At the industry level, there might be an examination of supply and demand forces for the products offered. For the national economy, fundamental analysis might focus on economic data to assess the present and future growth of the economy. To forecast future stock prices, fundamental analysis combines economic, industry, and company analysis to derive a stock's current fair value and forecast future value. If fair value is not equal to the current stock price, fundamental analysts believe that the stock is either over or under valued and the market price will ultimately gravitate towards fair value."
