Bonds are income instruments issued by large financial institutions and Governments through the treasury. Bonds work as debt or borrowing instruments for the issuers and investment opportunities for the investors. Governments and large financial institutes borrow money through a bonds issue. Bonds come with a face or par value, duration or maturity date, and a …

What are Deferred Coupon Bonds? And Why Investors invest in It? Read More »

A loan is obtained from a bank for a specific amount that has a specified repayment schedule with either a fixed or floating interest rate. An established small business with sound financial statements is appropriate for getting these types of loans. Obtaining this loan may require a significant down payment to reduce the payment amounts …

3 Types of Term Loans You Should Know Read More »

An exchangeable bond authorizes the holder the option to replace the bond for the stock of a company other than the issuer (usually a subsidiary) at a predetermined future date and under prescribed conditions. This is different from a convertible bond in a way that it gives the holder the option to exchange the bond …

What are Exchangeable Bonds? Kind and Importance Read More »

A negotiable instrument that is issued by a bank to act like shares in a foreign public company and allows investors to trade in the global markets is known as a depositary receipt. It is a type of physical certificate through which investors can hold shares in the equity of other countries. The American depositary …

What are the Depository Receipts? Types, Advantages, And Limitations Read More »

Introduction In accounting & finance, we often hear about the term “present value,” which refers to the value of the expected income stream calculated as the valuation date. The alternative name of the present value is the present discounted value. The annuity table is a process that helps in better understanding the annuity worth.  Ordinary …

Present Value of an Ordinary Annuity Table (Explained) Read More »

Introduction We all know finance plays an integral role in any business and non-business project. Some people take short-term capital and some belief in making long-term financial plans. To analyze the thorough life-cycle of heavy industrial work, project finance is introduced by financial experts.  What is Project Finance? The funding or financing that is being …

What is Project Finance? Member, Advantages, and Limitations Read More »