...The MBBS bond is intended to have negotiable value throughout its life. While the cost of a bond is determined by the price paid for it, an unused bond also has an open-market value because of the demand for goods and services. The maintenance of value is critical because it is likely that bond value will fluctuate within reasonable limits. This will encourage people to save bonds in the same way they save shares, savings certificates, and gold and silver. The MBBS bond would be subject to the following: 1. It would be subject to substantial, continual demand because of the need to sustain economic activity. 2. It would be subject to the maintenance of supply management controls to ensure bonds sustain GDP growth without the danger of inflation....
Words: 1038 - Pages: 5
...ARAPAHOE COUNTY BAIL BONDS hears about this happening all the time. A person lands in jail. Their first thought is about the quickest way to get out of jail and return home. Certainly, the first step is to request a bail to be set for the individual. Generally, that person is allowed to put up a bail and be released. The bail could be cash, property, or a bond. The person gives this in payment to the court, to assure the court that they will appear at a later date. However, if that person does not show up in court on the date assigned, the court gets to keep the bail and they will issue an arrest warrant for the individual that failed to show up in court on the assigned court date. ARAPAHOE COUNTY BAIL It is important to remember that the bail serves a very important purpose in Arapahoe County and across the state. The bail bond is a way to assure the court that the person will show up in court on the assigned day. Full bond payment is mandatory for the release of the person that was arrested and placed in jail. In addition, it should be noted that the bail might have several fees attached too. There are several types of bonds that are accepted by Arapahoe County. We will take a closer look in the following....
Words: 499 - Pages: 2
...Facts- Steven Dewayne Bond was a passenger on a Greyhound bus when his bus stopped at a permanent Border Patrol checkpoint in Sierra Blanca, Texas. Border Patrol Agent Cantu stepped onto the bus to check the immigration status of its passengers. He checked the entire bus and on his way back, he squeezed the overhead luggages. Bond was seated just before the end of the bus and above his head, Cantu squeezed Bond’s bag and noticed it contained a “brick-like” object. Bond admitted the bag was his and consented to a search. Agent Cantu discovered a brick of methamphetamine in the bag, disguised by a rolled pair of pants. Bond was indicted for conspiracy to possess and possession with intent to distribute. Procedural Disposition- After Bond was indicted with federal drug charges, he moved to suppress the drug charges by arguing Agent Cantu conducted an illegal search of his bag that violated the Fourth Amendment. Bond’s motion was denied, the District Court found him guilty on both counts, and he was sentenced to 57 months in prison. Bond then appealed to the Court of Appeals. The Court of Appeals affirmed the denial of the...
Words: 488 - Pages: 2
...the debt market. Topics examined include valuation, term structure of interest rates, derivatives of fixed income instruments, Treasury securities, 国库证券 corporate bonds 企业债券. The course should also be beneficial to students that want to pass CFA exams. Teaching material: 1. Course note package and additional materials online; 2. Textbook: Frank J. Fabozzi, Bond Markets, Analysis and Strategies, (Hardcover: 792 pages, Publisher: Prentice Hall; 6th, 7th, or 8th editions) Available in Spartan Bookstore. 3. Cases (case pack is available for sale at $ 36.71 in Spartan Bookstore in the International Center. a. Tombstones (HBS 5-213-085) b. Arbitrage in the Government Bond Market? [HBS Case 9-293-093] c. The Harvard Management Co. and Inflation-Protected Bonds (HBS Case 201053). #Relation, correlation between d. Cougars (HBS Case 295006). #How banks are making there money, how many moneys they make, is a good deal or not a good deal #Corporate finance course, simple liner relation Instructional methods: The course will be in a traditional lecture format. Students will be evaluated by several assignments, five cases and final exam. The weights are as follows: participation 5%, assignment 15% , four cases 20% each. All assignments are due before the class starts. In case you miss the case/assignment without good reason (for example, certified by MD medical need), the exam weight will increase correspondingly. #no final Tentative office...
Words: 2018 - Pages: 9
...Question 1 a) The starting point for this case is to determine the total market values for Virginia May. Therefore, the relevant information about notes payable, long term debt and total common equity are taken into consideration, which are provided in Table 1 of the case. Table 2 indicates a total market values of 392.650.378,84€, which is 81.637.621,16€ les compared to the belonging book values. While the book value of notes payables is the same for the market value, the long term debt as well as the total common equity differ in this respect. Using the formula provided in the case the present value (PV) for the bond is equal to 889,09€. By multiplying the PV of the bond with the number of bonds, equal to 220.000, the market values of the long term debt is calculated. Multiplying the shares outstanding with the share price of 17,45€ the market values of equity can be calculated. Summing up all the calculated market values, the bottom line is the current market values provided in Table 2. b) Once all the steps described above are done, one can use this information to calculate the weighted average cost of capital (WACC). Table 3 of the appendix shows the different weights for each category. Taking into account the relevant information about the cost of each category, it is easy to multiply them with the weights. Summing up all three pre-tax values, one ends up with a pre-tax WACC of 12,54 percent. Given the information that the marginal tax rate for Virginia May is 40 percent...
Words: 2423 - Pages: 10
...Elizabeth Goldenberg Assignment #5 Discuss the content and outcome of this case Department of Revenue of Kentucky v. Davis In the case of Department of Revenue of Kentucky v. Davis, the United States Supreme Court addressed the legality of Kentucky’s income tax exemption for interest on municipal bonds issued within the state. Kentucky tax law requires that only earned interest income on bonds issued out of state be taxed as part of an individual’s adjusted income. All earned interest from in state bonds is exempt from inclusion in an individual’s adjusted income. Kentucky residents, George and Catherine Davis, filed a class action complaint on the basis that Kentucky’s tax law is in violation of the dormant Commerce Clause of the United...
Words: 499 - Pages: 2
...Note: Our second case assignment for the quarter is the Harvard Business School Brief Case about Lyons Document Storage Corporation. Please go to our class website and buy the Harvard Case, but then use the following modification for you analysis and discussion. Please attach the copy of the Harvard case to your submission so that I will know that you purchased it. I think you’ll find this to be a little more straightforward presentation of the key issues. Lyons Document Storage Corporation: Bond Accounting. In December 2014, Rene Cook sat in her cubicle trying to remember what she had learned in business school about bonds and bond accounting. Ms. Cook, a new MBA and special assistant in a training assignment with the company president, had just met with David Lyons, president of Lyons Document Storage Corporation. He had asked her to think about the possible consequences of repurchasing company bonds outstanding using cash that he felt could be obtained by issuing new bonds with a lower interest rate. My Lyons had asked Rene to focus on how much the company’s annual interest payments could be reduced, how reported earnings would be affected, and how the refunding would change the company’s financial position as referenced on the balance sheet, if at all. The Company The Lyons Company was a family business in the stationary supply business until the document storage opportunity appeared in the early 1990’s. Lyons Document Storage Corporation was incorporated...
Words: 1343 - Pages: 6
...in the bond markets keep on changing from time to time. This is as a result of various activities in the bond markets and a combination of factors that include shifts in the demand and supply of credits, policies enforced by Federal Reserve, inflation, prevailing conditions of the economy, the rates of exchange of various currencies and fiscal policies. Presently, the prices of bonds are affected by increasing rates of interest and prospects of economic recovery. The changes in interest rates affect the values of bonds in the stock markets. Therefore, for a person considering buying bonds, it is important to be aware of the effects of the various factors on the bonds. When the rate of interest increases, the prices of bonds owned decrease and on the other hand, when the rates of interest decrease, the bind prices increase. However, the change in interest rates does not affect all bonds equally. Generally, mature bonds are not much affected by changes in interest rates. Also, bonds are not similar as some have fixed bond rates while others have variable ones. Investors are advised to stay calm even if the interest rates of bonds increase until their bonds mature. Then they will be able to earn interests as opposed to selling their bonds when they realize that interest rates increase. In case the interest rates increase when somebody needs to sell their bonds before they mature, the value of bonds will not be fully recovered since it could have dropped and the bonds will be...
Words: 709 - Pages: 3
...ISSUES IN ACCOUNTING EDUCATION Vol. 26, No. 3 2011 pp. 609–618 American Accounting Association DOI: 10.2308/iace-50029 A Series of Revenue Recognition Research Cases Using the Codification R. Mark Alford, Teresa M. DiMattia, Nancy T. Hill, and Kevin T. Stevens ABSTRACT: This series of four short cases is designed to help students develop the skills to research the Financial Accounting Standards Board’s (FASB) Accounting Standards Codification and other authoritative literature. It also is designed to help improve students’ ability to analyze and critique the complex issues that often surround the accounting for revenue recognition. The case scenarios describe transactions in which students must decide whether, when, and how much revenue to recognize. The issues analyzed involve bill-and-hold, multiple-element arrangements, gross versus net revenue reporting, and sales incentives. The cases are also designed to improve teamwork and communication skills. The sequence of cases is intended for use in an intermediate accounting class that covers revenue recognition, or in a capstone class that emphasizes critical thinking and research skills. Keywords: revenue; recognition; codification; research. INTRODUCTION evenue recognition is one of the top causes for financial statement restatements (Whitehouse 2010). In addition, revenue recognition is an area commonly questioned by the Securities and Exchange Commission (SEC) staff in their review of public filings and resultant comment...
Words: 4631 - Pages: 19
...Note: Our second case assignment for the quarter is the Harvard Business School Brief Case about Lyons Document Storage Corporation. Please go to our class website and buy the Harvard Case, but then use the following modification for you analysis and discussion. Please attach the copy of the Harvard case to your submission so that I will know that you purchased it. I think you’ll find this to be a little more straightforward presentation of the key issues. Lyons Document Storage Corporation: Bond Accounting. In December 2014, Rene Cook sat in her cubicle trying to remember what she had learned in business school about bonds and bond accounting. Ms. Cook, a new MBA and special assistant in a training assignment with the company president, had just met with David Lyons, president of Lyons Document Storage Corporation. He had asked her to think about the possible consequences of repurchasing company bonds outstanding using cash that he felt could be obtained by issuing new bonds with a lower interest rate. My Lyons had asked Rene to focus on how much the company’s annual interest payments could be reduced, how reported earnings would be affected, and how the refunding would change the company’s financial position as referenced on the balance sheet, if at all. The Company The Lyons Company was a family business in the stationary supply business until the document storage opportunity appeared in the early 1990’s. Lyons Document Storage Corporation was incorporated...
Words: 1344 - Pages: 6
...MGT 227 Fixed Income Securities and Markets Instructor: Sukwon Thomas Kim Office: Anderson Hall 242 Phone: (951) 827 4995 Fax: (951) E-mail: sukwonk@ucr.edu Quarter: Spring 2014 Lecture time: MW 8:40pm – 10:00pm Classroom: ANDHL 118 Course Website: http://ilearn.ucr.edu/ Office Hours: MW 2:00pm – 4:00pm SoBA Mission Statement Our mission is to develop diverse leaders, propel research-based innovation and promote the sustainable growth of Inland Southern California within the global economy. We harness the powerful resources of UC and our location at the nexus of commerce to create a laboratory for education, research, and productive partnerships across economic enterprises. The strategic activities that propel our mission include: • Conducting basic and applied research in management that explores and informs the creation, development and management of growth; • Providing degree programs that prepare our students to be effective managers and responsible community leaders with a deep understanding of the dynamics of growth in both a regional and global context; • Partnering with business and community leaders through a shared commitment to exemplary growth; and • Delivering educational programs to executives and the public at large that respond to the needs of our local, state, national, and international communities. MBA Program - Learning Goals Professional Integrity / Ethical Reasoning Skills Students will be able to recognize ethical issues, demonstrate familiarity with...
Words: 1081 - Pages: 5
...THE JOURNAL OF BEHAVIORAL FINANCE, 11: 82–91, 2010 Copyright C The Institute of Behavioral Finance ISSN: 1542-7560 print / 1542-7579 online DOI: 10.1080/15427560.2010.481981 Psychological and Cultural Factors in the Choice of Mortgage Products: A Behavioral Investigation Masaki Mori International University of Japan Julian Diaz III and Alan J. Ziobrowski Georgia State University Nico B. Rottke European Business School Using data from three countries that differ economically, culturally, and geographically, this study examines the role of Prospect Theory’s reflection effect, a psychological factor, in combination with Uncertainty Avoidance (UA), a cultural factor, on the choice of mortgage products. Experiments were conducted using business professionals in the United States, Germany, and Japan. The results suggest that risk-averse people tend to become more risk seeking, leaning more toward adjustable-rate mortgages (ARMs) when choosing a mortgage type, and that this psychological effect may underlie the mortgage choices of people who tend to choose ARMs, even across countries with different cultures. Keywords: Adjustable-rate mortgage, Fixed-rate mortgage, Prospect theory, Uncertainty avoidance, Experiment INTRODUCTION In terms of household risk management, the choice of a residential mortgage is one of the most significant decisions to make. At the end of second-quarter 2005, the value of outstanding U.S. residential mortgages was $8 trillion, 65% of the...
Words: 7970 - Pages: 32
...securitizations. However, covered bonds which backed by residential and commercial mortgages or public sector loan could be the efficient tool to bank in financing themselves for credit crunch in turbulent times. This essay will identify the advantages and disadvantages of covered bonds and then it will critically analyse whether covered bond is efficient debt instrument to get fund in turbulent times or just one of the products of banks to get finance. According to Vonhoff and Prokopczuk (2012) covered bonds were established in eighteenth century in Europe but its potential development has started in late 1990s (Schwarcz 2011). Covered bond is one of the debt instruments and the investors of covered bonds are protected by high valuable collateral which are the 'cover pool' of mortgages and 'public sector loan' in case of default (Prokopczuk, Siewert & Vonhoff 2013). Even though, covered bond is already one of popular debt securities in European securities market, it is almost new debt security to the rest of the markets of other countries, such as the securities market of USA (Schwarcz 2013). However, the recent severe financial crisis is could be one of the main reasons to use covered bonds more actively in these counties because of its advantages to both issuers and investors. There are several advantages of covered bond. The covered bond is could be less riskier than other debt securities and its risk close to the risk of the government bonds (Vonhoff & Prokopczuk 2012)...
Words: 1836 - Pages: 8
...Instructions There are ten cases included in this packet (Cases #1 through #9). You are responsible for reading all nine cases prior to class on Monday, October 7th. In addition, your group is responsible for informally presenting the solution to one case on that date. The case assigned to each group corresponds to your group number. Your presentation should take the form of “teaching” the rest of the class the material related to the case. Keep in mind that for exam purposes all groups are responsible for the content and solutions to all cases so your group’s effectiveness at teaching the material is invaluable to your classmates. How you can best accomplish your task is up to you but you should, at a minimum, include the following in your presentation: • An overall summary of the case facts; • An explanation of the key accounting issue(s); • An identification and discussion of the relevant sections of the FASB Accounting Standards Codification; • A demonstration as to how the relevant authoritative accounting literature was interpreted and used to address the facts in your case; • A discussion of the accounting conclusions reached; and • Any required journal entries In addition to the in-class informal presentations, your group is also responsible for preparing a memo which includes a summary of: • The case facts so that the reader knows the background and the substance of the accounting issues in your case; • The relevant and applicable...
Words: 4489 - Pages: 18
...INFLATION INDEXED BONDS INTRODUCTION: The importance of Policy analysis for business students Being a Business Student the importance of Policy analysis is to understand the Inflation Indexed bonds as it is a unique asset class and it is one of the few that offers a nearly perfect (direct) hedge against inflation, while also having a low correlation to other risk assets. Inflation protection is one of the central goals of strategic asset allocation, and not only since the beginning of the hyper-expansive monetary policy witnessed during the financial crisis of the past five years. Given the current indebtedness of many governments because of the global financial crisis and rising inflation, it is necessary to study the inflation-linked government bonds in order to remove the uncertainty of future inflation rate. Also it is important to analyze the opinion of the academic community towards policy framework and understand the perspective and vision of implication of policy, to focus and highlight the recommendations and suggestions based on the policy framework, implications, and functioning keeping in mind each and every section which may have positive or negative impact of the policy. Rationale for selecting the project (policy) Traditionally, in uncertain times, gold was considered the safest investment option - a liquid asset which promised better returns than most instruments. As India's policies started faltering, investors started flocking to gold. This gold rush has...
Words: 2468 - Pages: 10
