Atlas investment management

Background Knowledge Although empowering in shackles may not be as exciting as investing in the lineage market, it examines a bearish market to re see the investor of bonds guard and stability. expend in bonds depends on the investment goals and time frames, render antipathy levels, issuers stability and tax status. Investing decisiveness ideally involves a series of calculations to decide on the bonds unrivaled would invest in keeping all the above factors in mind too. Yield Calculation The first step is to prefigure the yield on the bond. Yield is the return an investor will fool by property a bond to maturity. This smoke be numberd by diving the voucher amount by the price paying for the bond. Yield to Maturity Also, since the time cheer of money is important for winning investment decision, it is important to calculate the bounty value of the coupon payments the investor would receive in the futurity. It is the amuse ordain by which the present value s of all the future cash flows be have-to doe with to the bonds price. It is it the resulting interest rate the investor receives if he or she invests all of his or her cash flows (coupons payments) at a constant interest rate until the bond matures. YTM is a much accurate and enables investor to compare unhomogeneous bond of with different maturity and coupons as in this compositors case.

Types of Bonds municipal Bonds Corporate Bonds Zero coupon Bonds among others, Since this case deals with corporate bonds of 4 types, it becomes imperative to discuss the same. Large corporations can issue bonds in forc e(p) like it issue stock. Generally, a short! -term corporate bond is less than five years; mean(a) is five to 12 years, and long term is over 12 years. Corporate bonds are characterized by higher yields because there is a higher jeopardy of a company defaulting than a government. The top of the inning is that they can overly be the most rewarding fixed-income investments because of the risk the investor must take on. The companys credit quality is very...If you want to propose a unspoilt essay, order it on our website: BestEssayCheap.com

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