: tse Seebioie | Oud lua : (5) Bad one He base fealuhes of bouds.2 What are the Gypes ? (%) Howe are bonds priced ? . (ji) Whatare He differnd ways We mEAsUse tee velit From a boud ? (i) How date bad. prises ange oth Loris? (v) Default ak, BS. -Oreht Default Swahs ond Cd0sFixeo INComMe Secuairies Dejuwion and tormanedeg y * Bonde: A, bond is ow 1OU sald by Ue porouer Os Wr Luder. precpeerfed payjmenss abe yartscwlar Antes a —— Zor Caton Boils Pare + fay ob mata OA Gpon Rade Gabon HH a va bue a Qurakwin Gushew Bp. Hula, Pow Sule, Lyre 5 yr {500 20g) ~ Lop 0} Jol-02. 28 10 gr 20 yr 5-150 2033 Tun 0) 156 82 2:26 do yr Goumple «Page veslu $1600, Caper pay made wf yeor + B75 wit moublas Pcs unsge (quer u perctlese Sb peapndc) Yolk: YM6 a Ta vel Life, sales bapben te beliGeon Couper pasyunants» He, bayer trust pss Hee fe prrah amas f Te Gafn owad, Gyoble Anusk peupous : $7 Fo tags be poo Cagenare Beush (Fes denen meng Aelly nie) “Glade bends, : allows UC issu eburchaat, the bond at aw Aacifod pecs: before the maliinky dale (dea: Hog ompon fbasacasy (jusshionu Rot before nodoanliy date , what wool he fe call Pro 7 On te issue doh a Derengsd Cunatus Bonbh * perc of oly prtech’ Cat us CeQiBus iupo. eyes bah or ower thaw urmal ? Comvenriote Boog : She bodfabller Aas an eblte y awallnn Ho bond ule 0 fpedt Hem of shaver Current Grice { lotro Au shares ooanhot Crwerson Rabi: Curneut volus of Ui shares Pe whey the be cu be oxehonged » Griusin en : uss f Bcd valine - over Ub Conversion —_—_ Value sua Rees hast or dower ? Rerencrasee Rong 5 Oppeciu hicedkoy iy a cellble bed. oa, i b fa ace He Dede 9 pir to relaem He bed. laf dot Exrendie ce bene allows Uni bender & rebaus He bad at Craumphr . akerect & FeonrinGe RATE DONT (Pre 2 abe) hy some measure ¢ Zz cumenl tterest rac Peeve bloa PRICIN 1 & OND FRIEIN Ganen the val oF par ad) He Oafon payed Scbeduke, bev much » a bod woth, ? (Presi vali) Many dake ae punids Snkeesk rele (accune that there wv ae uderest nt) Bowl value, = fees Value oP Gufema - Pesewt (alu of par vole Set ~ (arf (14r)7 [tx4224 - oe 4 {= 9 La feds : tian i os wt _ c = - = ee jar (= lar C : \ a 2 a (arytl Ferm a ~ wer F wrwatiy Tack ( y) ve . vty Proor ak uberess ale x | 94 boy Wa)” O Subpese the confer rel = tenest rake. thew the proce of ia bond = por valu _ om tL alge]? Go reve fy - Fo - : BE a] Wat (den: ? 2 tar anal pymant of 80 on a boud. t Go +1806 - Kanuly Facher (0, T) Pour - Value Us re ic Price = Confon x +[I- rol +Mss ans dente ve oe her, fhe bok prin 6 fever (breanae the tv fale prawns ane daccnnatid ob «Kehr vf) bre, ~ “ iN $ 1684 por vole BY HER tf on bend. Ubutst ow Cynon — (5) Grellars bo C),2 > Me Longer the maburte, porod, He mere sercehules fe pro is UF ukerst rele chowes bDifferent fubds Yul bo ali vd Cxrm) ras, cay op rebar, Corie ow a bak. of 6 aught woe gu) wh Hy Meme -annaat, Si Gaia se eh aioe $ a5 A T= es 7 ae Cash > > Kyanka he + bela yy the | Net seen lore 1 Sue ) Current Yul CY = Eheaals alow feu 8 Bak proce: - don Peeurum Bonos : Bends whh w Aayhew pew tho par vey _———_—— Op Ao & premarin ouYievo fo Cace Gramble: Safe we hene tue bonds, witich ane idenlieal evedbe ig a collabo eplioi Bonk A Straight bok : 8K Gupon, paid Semi -onnaally 30 yes. Bond B: Cobleble bead: 4 Coupon, pacd Semi annually, Cable be . a 10 Gears Gl price = 10% ef far valuc. ® dntuder, : (6% wfenst vale aye Hablly hygh, ne Chance of oll (a) Y wherest volte are leva, tv af Relucre pouyments ore fujp 4 GL prcte < tv of Plime jaymand, the i hao an eucentinr to coll. S the effeckine wilt fica. collale bud b def rent Unie we YTM Yeebé fe Coll : Sou ao XTM with two cruel df ferences () bodies ¥ Bb ges, wt look a 10 yrs (the cal peraod ) (0) Seatend & Par-valuc, we Wee Gt grew - 20 eee os 664% Me Liat (ary ae Shausps bende = 6.90% “(Whe sheath be mere wri abeat Ute beac) in ollek ? Dremu bend Wellers Core mire abeat Uy Yr Han He YTM.Reauaer Comeouno Rare oF RETURN a Gre of hee umf ticik ascumflane alert houg Lz yu « Lat Uz Confers on cavested af lh TM. Gamble : 2 yrs bend wabh a 10 annual Coupon raf 6 rolling ok Pur ee 1TM = (0% . leoe (i 0-1), pizio. = [600 + 104 10 leo > ioc" 1 tT 7 "% for value Gapen Gaon ch yr | eas 2 t dnberest Cubpoce Lia swinvestment ati & 8%, thew the ed f yo 2 We wll have 1000 +180 + (08 af J208 etal woline reas Om Be get fom [eo (\+ Suntnce )'= OLS Seat 2441f which io Lower aw Uke YTm,Bonn - Pei ces Brote Iden : OU bende efter Ue meshes the some Mal rate of relizru Uihaush te Cafilet opto ank [kL scone Componsate Can bibe. Why ? Ceugor Vote X Nasbet Rate > Digcount Coupon Rete > Marit rat > Premum 2 Gamble : YnulEd. oonfen vate = 72 fant Bure, Lof6: Onterest rate > 8°% Gleulater —— # J bxek UShat ov Ce pre Ua bord ? Fo x ek (8A, 3) $ won ev (8%,3)= 474.05 flee '4", Tox PA (4,2) + Weox hy (84,2) > 4eoi7 _ Pee OM loos ew f | Diewour, UD Tum ra Howe dot He prec of Qt ae ~ cna ou © G7 TomDerauct Risk + “How ws defoulk nek meaouned ? + What are Ha diterminante of bond. safety ? « Diserimurant hralysio Wiad ave the maoures Hat aye late fe dofemiie the cughh Uke borbholhers > * YT ar Default Rede, + Cebik lawl Swaps and CD04 Mho meacures Default Cch 7 Wedy's , SxP sha bD gre (bive BBB —> Gavest ment, beads Qow — Junk beds Liphad Pactore de we look ab 2 a *Gerage Gabe + Carungs ar » verany Rolin —> Wtatg + dlguadaty Rais —> Curent. keat » Pee Sab vo RAS be + Ger ow- Whe: «© Diserummvant Analysis Bonnnornea’s Ractrs + Sorkin, Pade + Gepuurchasce w fraction ah Lee martel. . Gan porrksce a fracken at @ Gh pre. © Conal boulls + Subordualsr Clauses "Dividend Qeshichon : + Clfaleral - Cds ond Cb0<