Money Market Instruments Available In Us And India Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1500 Downloads: 8 Date added: 2017/06/26 Category Finance Essay Type Narrative essay Did you like this example? Treasury Bills, are a type of money market instruments available in both US and India. These are the zero coupon bond and doesnt pay any coupon. Thats why these are generally issued at discount and on maturity redeemed at the face value. Don’t waste time! Our writers will create an original "Money Market Instruments Available In Us And India Finance Essay" essay for you Create order In India, also called as Government Instruments (G-secs), it is issued by RBI and are backed by Government of India. These are short term debt instruments as the tenure of currently issued T bills is of 3 types: 91 day (3 months), 182 day (6 months) and 364 day (1year). For example, a 91 day Treasury Bill of Rs.100/- (face value) may be issued at a discount of say, Rs.1.80, that is Rs.98.20 and redeemed at the face value of Rs.100/-. The investors will get a return equal to difference between the maturity value or face value (i.e., Rs.100) and the issue price. Treasury Bills are issued through auctions conducted by the Reserve Bank of India usually every Wednesday and payments for the Treasury Bills purchased have to be made on the following Friday. The Treasury Bills of 182 days and 364 days tenure are issued on alternate Wednesdays, that is, Treasury Bills of 364 day tenure are issued on the Wednesday preceding the reporting Friday while Treasury Bills of 182 days tenure are iss ued on the Wednesday prior to a non-reporting Friday. Currently, the notified amount for issuance of 91 day and 182 day Treasury Bills is Rs.500 crore each whereas the notified amount for issuance of 364 day Bill is higher at Rs.1000 crore. Government, at its discretion, can also decide to issue additional amounts of the Treasury Bills by giving prior notice. An annual calendar of T-Bill issuances for the following financial year is released by the Reserve Bank 8 of India in the last week of March. The Reserve Bank of India also announces the issue details of Treasury bills by way of press release every week. In US it is issued by Fed and is backed by US government. Tenure of US T-bills is 4 weeks, 13 weeks, 26 weeks, or 52 weeks. Generally these are issued in the denomination of USD 1000 and are issued at discount since these are zero coupon bonds. Dated Government Instruments are the Instruments which are longer in term than the T bills. These Instruments pay interest at fix ed time periods (usually half yearly) called coupon on the face value and this can be either fixed or floating coupon. The tenor of these Instruments can be up to 30 years. In India, the Public Debt Office (PDO) of the RBI acts as the registry / depository of Government Instruments. This office takes care of all the dealings for these Instruments like issue, interest payment and repayment of principal at maturity. We generally have fixed coupon Instruments. The nomenclature of a typical dated fixed coupon Government security has the following features coupon, name of the issuer, maturity and face value. e.g. If the bond is called 7.49% GOI 2017 then it would have these features. Date of Issue : April 16, 2007 Date of Maturity : April 16, 2017 Coupon : 7.49% paid on face value Coupon Payment Dates : Half-yearly (October16 and April 16) every year Minimum Amount of issue/ sale : Rs.10,000 Same as the case with Treasury Bills, dated Instruments of both Gover nment of India and State Governments are issued by RBI through auctions. The Auctions are announced by the RBI a week in advance through Press Releases and paid advertisements in major dailies (for dated Instruments). Hence the investors get adequate time in order to plan for the purchase of government Instruments through such auctions Types of Dated Instruments Fixed Rate Bonds As the name suggests the interest rate i.e. cupon rate is fixed on these bonds for the entire life of the bond. As already told, In india, most Government bonds are issued as fixed rate bonds. e.g. Lets say RBI issue 8.24%GS2018 on April 22, 2008 and the tenor of the bind is 10 years maturing on April 22, 2018. Coupon on this security will be paid half-yearly at 4.12% (as the 8.24% is the total coupon and hence the half yearly payment being the half of it) of the face value and it will be paid on October 22 and April 22 of each year. Floating Rate Bonds As the name suggest these bonds dont have a fixed coupon rate and the coupon is re-set at pre-announced intervals based on a specified methodology. In these bonds the coupon of the bond is re-set at regular intervals and these interval are defined beforehand while issuing the security. The rate is generally calculated by adding a spread over a base rate. In India, most floating rate bonds issued by the GOI, the base rate is the weighted average cutoff yields of the last three 364 day Treasury Bill auction preceding the coupon re-set date. Floating Rate Bonds were first issued in September 1995 in India. For example, a Floating Rate Bond was issued on July 2, 2002 for a tenor of 15 years, maturing on July 2, 2017. The base rate on the bond for the coupon payments was fixed at 6.50% being the weighted average rate of implicit yield on 364 day Treasury Bills during the preceding six auctions. Further, in the bond auction, a cut-off spread (markup over the benchmark rate) of 34 basis points (0.34%) was decided. Hence the coupon for the first six months was fixed at 6.84%. At the next reset date after six months, assuming that the average cutoff yield in the preceding six auctions of 364 day Treasury Bill is 6.60%, coupon applicable for the next half year would be 6.94%. Zero Coupon Bonds Zero coupon bonds are bonds with no coupon payments. Like Treasury Bills, they are issued at a discount to face value. Such Instruments were issued by the Government of India in the 1990s, but no issue was made thereafter. Capital Indexed Bonds These are bonds, the principal of which is linked to an accepted index of inflation with a view to protecting the holder from inflation. A capital indexed bond, with the principal hedged against inflation, was issued in December 1997. These bonds matured in 2002. Steps are now being taken to revive the issuance of the Inflation Indexed Bonds wherein payment of both the coupon and principal payments on the bonds will be linked to an Inflation Index (Wholesale Price In dex). Bonds with Call/ Put Options Bonds can also be issued with features of optionality wherein the issuer can have the option to buyback (call option) or the investor can have the option to sell the bond (put option) to the issuer during the currency of the bond. A bond (viz., 6.72%GS2012) with call / put option was issued in India in the year 2002 which will mature in 2012. 6.72%GS2012 was issued on July 18, 2002 for a maturity of 10 years maturing on July 18, 2012. The optionality on the bond could be exercised after completion of five years tenure from the date of issuance on any coupon date falling thereafter. The Government has the right to buyback the bond (call option) at par value (equal to the face value) while the investor has the right to sell the bond (put option) to the Government at par value at the time of any of the half-yearly coupon dates starting from July 18, 2007. Special Instruments In addition to Treasury Bills and dated Instruments issued by the Gov ernment of India under the market borrowing programme, the Government of India also issues, from time to time, special Instruments to entities like Oil Marketing Companies, Fertilizer Companies, the Food Corporation of India, etc. as compensation to these companies in lieu of cash subsidies. These Instruments are usually long dated Instruments carrying coupon with a spread of about 20-25 basis points over the yield of the dated Instruments of comparable maturity.These Instruments are, however, not eligible SLR Instruments but are approved Instruments and are eligible as collateral for market repo transactions. The beneficiary oil marketing companies may divest these 11 Instruments in the secondary market to banks, insurance companies / Primary Dealers, etc., for raising cash. Steps are being taken to introduce new types of instruments like STRIPS (Separate Trading of Registered Interest and Principal of Instruments). STRIPS are instruments wherein each cash flow of the fixed coup on security is converted into a separate tradable Zero Coupon Bond and traded. For example, when Rs.100 of the 8.24%GS2018 is stripped, each cash flow of coupon (Rs.4.12 each half year) will become coupon STRIP and the principal payment (Rs.100 at maturity) will become a principal STRIP. These cash flows are traded separately as independent Instruments in the secondary market. State Development Loans (SDLs) State Governments also raise loans from the market. SDLs are dated Instruments issued through an auction similar to the auctions conducted for dated Instruments issued by the Central Government (see question 3 below). Interest is serviced at half-yearly intervals and the principal is repaid on the maturity date. Like dated Instruments issued by the Central Government, SDLs issued by the State Governments qualify for SLR. They are also eligible as collaterals for borrowing through market repo as well as borrowing by eligible entities from the RBI under the Liquidity Adjustment Facility (LAF).

Descriptive Essay - Original Writing - 1476 Words

The music was beautiful. His fingers flowed across the piano keys like a ballerina, so elegant and graceful. His gaze was lowered to where his hands spun the melodic notes and I could make out the dark, black lashes on his eyes lined perfectly with one another. He appeared calm, serene, at peace. No frown marked his forehead, no desire tugged at his lips. He was simply sat at the back of the common room, slipped into his own world of beautiful music. I sat at my desk with a pile of homework slumped beside me. My chin was cupped in my hands and my head was tilted to one side as I watched him with smiling eyes, ignoring the duties laid out in front. Somewhere beneath my surface, I knew that I had a million of things to do but for now, in this small, precious moment, I wasn t about to let go of the perfect image layed before me on my computer screen. His name is Luhan. He is a Chinese singer and actor and everyday since I found out about him, he has become a huge part of my life. Everyday, I would sit on my desk pretending to be engaged with a pile of homework, when really, I was fantasising an unrealistic romance with him because there was no way someone famous like him would end up with an ordinary girl like me. In this moment, everything seemed fine. The atmosphere was calm and he was beautiful and my mind was untroubled for once. There was nothing to be upset about, I told myself. I was fine, everything was okay, I was okay. And everything really was going okay- untilShow MoreRelatedDescriptive Essay - Original Writing1110 Words   |  5 PagesI don’t know how I got to where I am, but I’m here now, and I have to win if I want to live. I am in a game, and in order to live, I have to escape. That’s the thing, though: I don’t know how to escape. I was running for my life around this old house that looked like it came straight out of a horror movie. I doubled over and held my head in pain as I saw the static, which meant it was coming. 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Crystallization, Sugar, and Fudge Lab Essay Sample free essay sample

Controlled crystal formation is of import to get a certain texture in crystalline confect. Crystalline confects are smooth. creamy. and easy chewed with a definite construction of little crystals that resemble bantam snowflakes. Examples of crystalline confects are fondant. fudge. and penoche. When a concentration of sugar is higher than 121 grades Celsius. it is an formless or non-crystalline confect. these are confects formed from a sugar solution that does non crystallise such as insignificant toffee. and caramel. The intent of this lab is to understand how temperature influences the texture. and soundness of fondant. and fudge. Materials and Methods: The ingredients that were used for the fondant formula were 200 gms of saccharose or better known as table sugar. and 118 milliliter of H2O. The 118 milliliter of H2O and 200 gms of saccharose was placed in a one quart saucepan on an initiation range top on the highest heat scene of 8. and a thermometer was placed in the pot while stirring the sugar and H2O with a wooden spoon. We will write a custom essay sample on Crystallization, Sugar, and Fudge Lab Essay Sample or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page We kept an oculus on the thermometer to do certain that it was immersed into the solution. but non touching the underside of the pot. We reduced the heat to about 6 after the temperature reached around 100 grades Celsius. We did this because we didn’t want the sugar solution to travel above coveted temperature of 113 grades Celsius. After making 113. we removed the saucepan from the range put it on a hot home base. We kept the thermometer in the solution and waited about 45 proceedingss until it reached the cooling temperature of 40 grades Celsius. The ingredients that were used for the basic fudge formula. our grouped had to duplicate the formula. We used 400 gms of sucrose 56 gms of pure cocoa. 28 gms of butter. and in replace of pick we used 236 Master of Library Science of H2O. We placed the sugar. H2O. and cocoa in a one quart heavy sauce pan on the initiation range on a low scene until all the cocoa had melted. We kept the thermometer in the solution with the bulb immersed in the fudge without touching the underside to do certain we had the right temperature. We increased the heat puting on the range top to the highest scene to boil the mixture quickly. We boiled the mixture until it reached 114 grades Celsius. We removed the fudge and instantly added the butter without stirring and allow the mixture cool to 40 grades Celsius. After it reached to 40 grades we so tried stirring the fudge but the ingredients formed an formless consistency and it was non possible to stir in the butter. Consequences and Discussion: The consequences of our fondant was somewhat xanthous in colour with really big crystals. and after waiting for it to make 40 grades Celsius it was really difficult to the touch and non able to even be taken out of the pot. What I did seek from the fondant we made it had a farinaceous like consistency somewhat resembling sand. really difficult to masticate. and suck to our dentitions. It was highly molar impacting. The ground for the xanthous calendered colour and big crystals was because we over cooked the fondant. It was more like a stone confect so a fondant. The ground why we believed it turned into an formless confect was because the thermometers we were utilizing for both formulas was off by two grades Celsius. This made it really hard to state if it was done or if it was undercooked. Besides this was the first clip utilizing an initiation range. and that was besides hard to command the temperature because it was boiling faster than the other groups. The basic fudge formula tur ned out really dark brown about black. stuck to the saucepan. and really overcooked. What I tasted was burned. gritty. tooth impacting cocoa. Because the consequences for both the fondant and the fudge were so similar in consistency. texture. and soundness we believed that if we had a calibrated thermometer and knew more about the temperature difference in initiation range tops I believe we could hold produced two better merchandises. Decision: After executing the lab. we noticed how hard controlled crystallisation was to accomplish. Even though fudge is more forgiving so fondant it is highly of import to hold a good calibrated thermometer. If the temperature is even one grade off it can travel from a crystalline confect to an formless confect in an blink of an eye. This lab was helpful in understanding how to cook confects. and the importance of consistence when it comes to fondants and fudges. We learned what over and under cookery does to the saccharose ( table sugar ) . and how adding ingredients like interfering agents such as acids can assist alter molecules of hydrolyze sugars into monosaccharoses. This lab helped in seeing how sugar and H2O can move together and how critical temperature is in doing types of confect.

Black Colleges Essays - Historically Black Colleges And Universities

Black Colleges In the world we live in today a person can almost choose any college or university they want to to continue their education upon graduation from high school. It really doesn't matter if it is a four year, two year, or technical school, there is a school for any person in any major. What draws a person to attend one certain kind of school compared to another? In this case why is there an increase in Black students attending Black colleges in the past decade? One might say, "Well how can you tell that more students are getting into these colleges, rather than these schools accepting an increased number of students each year?" These are all important questions to ask, and there are numerous reasons and causes for schools to increase the number of students they allow and the number of students wanting to attend these colleges. I have an older brother and an older sister who both attend a historically black college (HBCU), Central State University in Wlberforce, Ohio. I have always had a lifelong dream of attending an HBCU. In fact I was accepted to both Virginia Union in Richmond and North Carolina A&T in Greensboro before I was accepted into Wright State University. My main reason for wanting to attend these schools was the history that they have and the way they made me feel when I went for visits. Those are my personal reasons for wanting to attend these schools, but there are more than personal reasons people are starting to have a higher interest in attending these schools. Lowery 2 For the past three years my church back home in Columbus has held an annual Black College Tour. It is designed to garner the interest of the young people at my church and all around Columbus in HBCU's. I was a student the first year and a chaperone the last two. In visiting these schools one can find that the administration at these colleges and universities do anything they can to get you admitted to these schools. Almost all of them are rated among the best schools in the nation, too. These are no small time schools. Some students are finding it easier to go to HBCU's because of the recent Supreme Court rulings on Affirmative Action. They feel that it will be harder for them to have an equal chance of being accepted to non Black colleges and universities. Most of those people don't want to put up with all the mess that goes on in those universities today, where even still, in 1997, people are admitted because of physical appearances and not mental capabilities ("Straight Talk" 122 123). Speaking in those terms people just do not want to deal with downright racism. Some HBCU's in areas with lots of non Black colleges usually have increased enrollment due to past histories and events that happened at the schools. An example was in Florida in 1988. Incidents of racism on the major White college campuses caused a 19 percent increase at Florida A&M University in Tallahassee, another HBCU. It was recorded as the largest increase in enrollment of any of the colleges in the state. Of the 1,876 coeds in the system, 1,327 were enrolled at Florida A&M, while the other universities enrolled the rest ("Racism" 22). Even now Florida A&M has increased enrollment at the school. They reported about 100 more freshman in this year's class than last year's (Geraghty A46). There are some students who are starting to attend HBCU's because of their feeling of deprivation of black culture in their lives. In an article in The Lowery 3 Black Collegian last year, a young man, only referring to himself as "The Invisible Man" to readers, wrote to the editor about attending an HBCU after having gone to predominantly White schools all of his life. He chose to attend a Black school because, "I felt very intimidated by my ignorance of Black history, culture, language, and everything else that I have missed in my previous education" (qtd. in Parker 21). After attending his first semester in school, "Invisible Man" found he was what he called a "Cultural Zombie." He chose to stay at the school to educate himself about the culture that he was left in the cold by his family. He says his family is Black, but never emphasized being black and the culture that comes with it. One thing he say's he has learned from his unnamed school is who he is and his role as

Wharton School Application

Wharton School Application center where I will do my best to provide a great involvement and get a lot of new experience. I am very hard working student who never gives up in any situation. I am ready to meet tight deadlines and always do my work with the special attention. These features of character always help me to be responsible in studying. As far as I am an international student, I will reflect a different culture in the school by making different meetings and parties. Alumnus of Wharton school are very valued among employers of world famous companies as this school represented itself as a top ranked educational institution. Getting education in this school will give me the opportunity to become a professional in my field of science. Those are the reasons why I would appreciate to become a student of the Wharton school.

Effectiveness of Three Classical Leadership Styles Essay - 10

Effectiveness of Three Classical Leadership Styles - Essay Example Differences between leadership and management entail the scope, nature, and objectives. While management may merely pertain to the administrative work and organization, leadership entails the guidance, the direction setting, leading from the front and setting examples. The domain of work of a leader is far broader than the management handling individual. Leader’s span of command and control may also be an expanded one as compared to management. A leader can be a manager, but a manager may not be necessarily a leader. Open systems and closed systems based organizations are the two broad line categories of organizational structure. The former pertains to the kind of organization where the interactive environment is observed and the stakeholders are invited from outside. The closed system, in contrast, comprises a substantially conservative and closed-ended system with little interactive environment and activities towards the outer world and other enterprises. The chances of progress and development are relatively higher in the case of open system based organizations. Closed organizations are often effective in case of small to medium scale projects and businesses (Tokoro, 2010 ¸p. 6). Theory X and Theory Y are two different terminologies and concepts used in the field of sociology as well as administrative management. It pertains to the leadership style, the individuals’ mindsets, their aptitude, and tendency towards the kind of environment they work in and they find themselves comfortable in. Theory X, in particular, is related to the kind of individuals who take risks, take initiatives and want to lead from the front. They do not have the fear element.  

Article literature review Essay Example | Topics and Well Written Essays - 500 words

Article literature review - Essay Example To determine the degree of standardization of advertising practice in perfumes, apparel and cosmetics in five European countries, a research study, with the use of content analysis, was conducted by using several editions of Vogue magazine. Prior to the study, it has been recognized by Sommers and Kernan that standardization of advertisements is â€Å"possible when the product serves the same needs across culture such as beauty, love and fear† (Seitz & Johar, 1993). This is the reason why the products that will be included in the study are perfumes, cosmetics and apparel, which are all considered beauty products. The three brands of perfume covered by the study were Yves Saint Laurent â€Å"Y†, Paloma Picasso and Lancome Tresor. The apparels included were Guess, Chanel and Giorgio Armani. Helena Rubinstein, Guerlain and Lancome Definicils were the cosmetic brands included. The countries chosen for the study are Spain, Italy, France, Germany and UK because of its very di verse cultures. The different print advertisements of the said products were examined according to picture, size, color, general layout, caption and explanatory text (Seitz & Johar, 1993). The results of the study confirmed the hypothesis that perfume advertisements were more standardized than apparel or cosmetics (Seitz & Johar, 1993). Moreover, the study also corroborated that â€Å"apparel advertisements were more localized than perfume or cosmetics† (Seitz & Johar, 1993). The study made presents itself as a guide for European advertisers who must take into consideration the anticipated development that the different European countries will continue to merge into a single market; thus, a need to have a unified brand image (Seitz & Johar, 1993). Having standardized advertisements will benefit global companies as it would mean economies of scale in advertising expenditures. Advertisers however must