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BONDS - Coggle Diagram
BONDS
WHAT-IS
LoanType
Company
Needing
GoesTo
Bank
Bank
Gives
Loan
To-Company
Converts
Loan
Into-Bond
Sells
Bond
To-Investors
Payment
Bi-anually
Maturity
Receive
Par-Value
End-Time
Issuer
Corporation
Govt.
State
Central-Bank
COMPONENTS
ParValue
Value
AtIssue
Received
AtMaturity
Coupon
Bi-annually
InterestPayment
Term
TimeFor
Maturity
MarketValue
InterestRate
Changes
RISK
Failure
Company
Govt.
OrderOf
Equity
Distribution
Holders
Bond
PreferredShare
CommonShare
Interest
Rate
Change
Decrease
RaisesBondValue
Increase
LowersBondValue
Inflation
If-Bond
Interest
5%
4%
Money-made
1%
VALUE
Interest
Simple
Received
Interest
Sum
All
Coupons
Yield
Coupon
1-year-coupon /
ParValue
Current
1-year-coupon /
MarketPrice
NotAccounts
Lost/gained
ParValue - MarketPrice
AtMaturity
Compound
Reinvested
At
CouponYield
YTM
YieldTo
Maturity
Includes
Compound
Interest
Lost/gained
AtMaturity
Equation
pow(..., 1/yearsLeft) - 1
ParValue/CurrentPrice
WHY
2009
StockMarket
AtLow
Bond-30Y
2.83%
Return
Stocks
6.7%
2008
StockMaket
WasHigh
Bond-30Y
5%
Stocks
Average-P/E
27
Return
3.7%