UNO FINANCE 2302 - EXAM 2 INFORMATION

Wall Street Journal Bond listings for: corporate bonds, treasury bonds/notes/bills and strips.

Bond indenture, call provision, coupon rate, debenture, junk bonds, maturity date, par value, put provision, sinking-fund provision, Treasury Bills/Notes/Bonds/Strips, Zero-coupon bonds.

Coupon yield, Current yield, Expectations Hypothesis, Liquidity Preference Theory, Market Segmentation Theory, Term Structure of Interest Rates, Yield-to-Call, Yield-to-Maturity.

Federal Reserve: Discount Rate, Federal Funds Rate, Reserve Requirements, Open Market Operations, Fed. Chairman, Federal Open Market Committee.

 

Agency Securities:  Pass-Through, Government National Mortgage Association (GNMA), Student Loan Marketing Association (SLMA), Federal National Mortgage Association (FNMA), Securitization.

Calculations that we need to aware of:

Coupon Yield, Current Yield, Yield-to-Maturity, Yield-to-Call, Bond Valuation, Converting a bond quotation into a price.

I will provide time value formulas, the others are up to you.