02 Debt - Int & Foreign Flashcards
Coupon Date
payment date
Dated Date
Interest accural begins
Accrued Interest Calculation
Who uses
- 30 day month
- regular month
- corp / muni / agencies - settle T+3
- fed govt - settle T+1
Don’t count settle date!!
Accrued Interest Calculation
Formula
F & A Muni, traded Mon., Mar 5th
? time elapsed
Muni = 30 day month (T+3)
Don’t count settle date!!
F 30
M 7 (5 + 2, don’t count settle date)
Total 37 days
Accrued Interest Calculation
Formula
F & A Govt, trade Mon., Mar 5th
? # days accured
Govt = cal days (T+1)
F 28
M 5 (Don’t include settle date!!)
Total 33
Trading Flat
w/o interest
Equity Linked Notes
Final pmt based on stock
Eurodollar**
Eurobonds
InterBank Mkt
def, yeild, tax
us dollars invested in foreign banks
high yeild
no tax
Eurodollar
Eurobonds
InterBank Mkt
issued by?
what currency int?
issued by foreign in their currency
interest in thier currency
Eurodollar
Eurobonds
InterBank Mkt
where
who sells, what effect
more $ in mkt causes
intl mkt
fed buy & sells effect exchange rate
more $ in mkt - lower price
