WHAT IS COUPON…? The term \”coupon\” is derived from the historical use of actual coupons for periodic interest payment collections. The coupon rate is the interest rate paid on a bond by its issuer for the term of the security. ZERO COUPON BOND Zero coupon bonds is a bond that is issued at a discounted […]
What Is Debt…? Debt is an amount of money borrowed by one party from another. Debt is used by many corporations and individuals as a method of making large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is
Asset Allocation Asset Allocation is at the heart of personal finance What is asset allocation all about…..? If asset allocation means diversification, then may I ask what is diversification……? What is Diversification..? Let’s look at the example of “Emirates”. It is one of the finest airlines. It also provides a very unique service. The different
Duration Management Debt funds invest in debt papers which need to give good fixed returns & be of good quality. Based on the interest rate outlook, the fund manager decides whether to invest in long duration papers or short duration papers. But how is his decision of selecting long duration papers or short duration
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Know your Bank There are some parameters that bank customers should monitor regularly to avoid a shock later. Gross Non-performing assets NPA’s indicate how much of a bank’s loan are in danger of not being repaid. If interest is not received for 3 months, a loan turn into NPA. A very high gross NPA ratio
Commercial Paper & Treasury Bill A Commercial Paper (CP) is an unsecured, short-term debt instrument issued by a Corporation, in the form of promissory note or in dematerialised form, typically for meeting short-term liabilities. COMMERCIAL PAPER A Commercial Paper (CP) is A money-market instrument Issued by corporates and Financial Institutions To garner money from the
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Certificate of Deposits CDs or Certificates of Deposits are Financial Instruments. CERTIFICATES OF DEPOSIT What do CDs actually mean? Who issues them?? Who subscribes to them??? CERTIFICATES OF DEPOSIT Sunil wishes to borrow Rs. 40 Lakhs for his new business venture. He goes to his bank to ask for a loan. But though the bank
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Common Mistakes BUYING INSURANCE POLICIES FOR INVESTMENT PURPOSE Have you invested your money in insurance plan to get a return in future..? Big mistake! Out of 100 people,95 have made this mistake. Very few people understand the difference between term plan, endowment plan, etc. NOT ABLE TO CRACK THE CREDIT CARD MYSTERY Are you paying
Domicile A person is said to have a domicile in a country in which he/she is considered to have his/her permanent home. IN WHICH COUNTRY WAS THE PERSON DOMICILED…? Every person has one domicile from his birth to death. As soon as person is born the domicile of his/her father attaches to him/her. This is
CALL MONEY On a lazy Sunday night you and your family are relaxing on a couch watching your favorite TV show. Suddenly, someone rings your door bell. You open the door and it’s your long distance relatives who have made a surprise visit. While you can’t show your displeasure but you still welcome them and
