10/9 notes Flashcards
1
Q
direct finance
A
method finance where borrowers borrow funds directly from financial markets without 3rd party service
2
Q
indirect finance
A
Borrowers borrow funds from financial markets through indirect means like financial intermediary
3
Q
what are bonds
A
I ow yous
4
Q
bond coupon
A
a debt obligation with coupons attached that represent semiannual interest payments
5
Q
yield
A
Coupon/Price x 100
6
Q
PinCo
A
largest office for bonds in the United States
7
Q
PPV (purchase price variance)
A
difference between standard price and actual price
8
Q
what do bond prices move oppositie of
A
interest rates
9
Q
Price of Bond
A
100 + 100/(1+r) + 100/(1+r)^2 + 100/(1+r)^3
10
Q
shorting a stock
A
sell high buy low
