This paper is all about bonds and their different types Essay

This paper is all about bonds and their different types - Essay Example Let's have a glance over the definition of Bonds and their importance and usage. A debt security in which the issuer is liable to pay interest at a later date to the security holder, which termed as maturity is called bonds. More precisely we can say that a bond is a type of a loan in which the person which issues the bonds is termed as borrower and by contrast a person which holds it, termed as lender. Interest or coupon rate is the thing which becomes a bridge between the borrower and lender which ultimately constrains the value of return, and it must be repaid at fixed interval over a specified period of time. A little bit contradiction found between the bonds and stocks. In general, both are securities but stock holders are the equity stake holder of the company and known as the real owner of the entity, while the bond holders are the lenders to the issuer, which usually have a specified term of maturity after which the bond security gets redeemed (Vernimmen, 2006). According to the statistics of the Federal Reserves (FED), there are more than $1.7 trillion municipal securities, $3.6 trillion of outstanding US Treasury securities, $2.7 trillion of corporate bonds and more than $470 billion of bonds issued by the foreign governments and corporations in the United States. There are several types of bonds a corporation issues. Usually treasury bonds are referred as the government bonds, whi... anding US Treasury securities, $2.7 trillion of corporate bonds and more than $470 billion of bonds issued by the foreign governments and corporations in the United States. There are several types of bonds a corporation issues. TREASURY BONDS: Usually treasury bonds are referred as the government bonds, which are issued by the US federal government. The bonds are free from default risk because the federal government will make payments on the promised time period. Now, we are well aware with the fact that the treasury bonds have no default risk but that's not mean that such bonds are totally free from risk because the price of the bonds may increase or declines with the fluctuations in the interest rates (Vernimmen, 2006). Treasury bonds are termed as the safest bonds, because the collateral of these bonds are in the hands of the government, which attracts the confidence of the investors and become a triumph for both the corporations and the bond holders. CORPORATE BONDS: We can get an idea in an instant from the name of the corporation bonds that the bonds which are issue by the corporations in order to raise the overall equity of the firm are called corporation bonds. As compared to the treasury bonds, corporation bonds have the default risk appetite in it. It means from any contingency, if the firm envisaged a bad time on the financial health then probably the firm is unable to facilitate its bond holders or we can say that unable to meet or fulfill their financial promises and legal obligations (Cinnamon, 2006). Level of default risk varies with the characteristics of the corporate bonds, which often refereed as "credit risk". MUNICIPAL BONDS: Municipal bonds are also issued by the local government. Its also have default risk like the corporation bonds.

America Post-Civil War Growing Pains Essay Example | Topics and Well Written Essays - 750 words

America Post-Civil War Growing Pains - Essay Example This period was the second major turning point in a long list that occurred in this particular period. It had far-reaching consequences for America’s social and political life. There were many changes to the laws at the national level, which promised a new breathing space for the African-American population, there was also a promise from the national government to protect the rights of the new citizens of American Republic (Foner, Mahoney, pp. II, 1995). Therefore, the paper enters into a discussion of the impact of the two major turning points, which occurred after the civil war, as well as considering the different effects of the laws that were passed during this period. It is essential to identify crucial differences that led to the changing of the economic, political and social life of Americans. While the industrial expansion was concentrated in the North, the country witnessed massive rates of economic growth. There was a huge expansion of agriculture and industry, as we ll as a growth in population. Much of the economic growth occurred in Northeast, Midwest and plain states. The South remained largely agricultural. One of the reasons that the North was able to pursue its agenda of economic progress was because the Southern states provided no opposition. A major reason for the huge economic growth was the different innovations, which changed the scale and scope of manufacturing. This was expressed by approximately 45,661 patents that were released in 1897 compared to 1045 issued in 1844. These innovations included the typewriter, calculating and adding machines, the cash register and the Kodak camera. There was a boom in the textile industry, as a result of the improvements in the technology, such as looms and faster spindles in weaving (Gale, 1999).This resulted in huge changes within American society, driven by mass immigration, and urbanization. During this time, America became what it is now, largely shaped by the phrase ‘The American Drea m,’ which was the dream of every immigrant who set foot on our shores during the reconstruction period. During this stage of industrialism, there was little or no leisure time for factory workers and many managers and professionals. An average American may have witnessed an increase in economic growth, but they also faced problems of pollution, and disturbances to their lifestyles, because of the different influx of immigrants (e-history, 2012). The other major turning point of American history, which occurred during the reconstruction period, was the assassination of Abraham Lincoln. This was a result of the Lincoln administration’s determination to force immediate unification of the North and the now defunct Confederacy, moving former slaves along the road to freedom; Lincoln tried to pave the road, which would eventually lead to emancipation. Eventually, Lincoln included the African-Americans in the military in the North, so they could aid in the war effort to fight against the Confederacy. Following the end of the civil war and during the reconstruction plan, Lincoln tried to persuade many states to abolish slavery, and in most cases, he proved to be unsuccessful. The Thirteenth Amendment, which Lincoln worked towards with the Republicans eventually, abolished slavery in the entire country (Foner, Mahoney, pp. 22-24, 1995). It cannot be stated explicitly the way Reconstruction would have been