Thursday, October 29, 2009

(88)---VALUATION OF PREFERENCE SHARES

Valuation of Preference Shares A company may issue two types of shares, Preference shares. Ordinary shares. Preference shares hav...

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Saturday, October 24, 2009

(87)---DEFAULT RISK AND CREDIT RATING

Default Risk and Credit Rating Default risk is the risk that a company will default on its promised obligations to bond holders. Bondhol...

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Wednesday, October 21, 2009

(86)---THE TERM STRUCTURE OF INTEREST RATES

The Term Structure of Interest Rates There are several interest rates in practice, both companies and the government offer bonds with d...

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Monday, October 19, 2009

(85)---BOND VALUATION AND CHANGES IN INTEREST RATE

Bond valuation and Changes in interest rate The value of the bond declines as the market interest rate increases, bond values decline...

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