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).

The Use Of Zebrafish With Spinal Injuries - 1430 Words

Lindsey Simmonds Ferris 5 AP English Language 18 December 2015 Continue Animal Experimentation In her lab, Catherina Becker studies the capability of zebrafish with spinal injuries to reconstruct their spinal cord. For the zebrafish to accomplish this, it has to do many things. First, various kinds of immune cells must leave the area of the injury. Then, it has to reconnect the contact between the brain and the spinal cord. And finally, the stem cells in the spinal cord must create new cells in order to be attached to the muscles. In studying this skill used by zebrafish, Becker wishes to somehow learn what it would take to repair spinal injuries in humans (Becker). Often times, scientists perform procedures on animals and take those results, to then attempt to connect the results to humans, in order to better understand how the human body operates. Although it is very important, some do not believe that animal experimentation is vital in medical research. Because animal experimentation has extensive benefits to humans, the procedures that scientists perform for medical treatm ents should continue to be used, and testing on household and cosmetic products should not use living animals for research. Countless medical advances have been made as a direct result of animal testing. Cures and preventions of diseases have been discovered and tested for safety by using animals. Vaccines have also been created for various reasons such as influenza, rabies, tetanus, infectiousShow MoreRelatedBCH190 Essay14810 Words   |  60 Pagesof biological inputs and outputs through cycles, like a locomotive engine that can not run out of control, so that even in complex pathways ‘life works in cycles’ (C) biochemical processes that consist of a series of linear reactions that will use all of the available resources until they are extinguished (D) of organisms that can spontaneously generate from inorganic matter (E) an evidenced based external life force that guides all life 2. ‘Life’ is said to be opportunistic and is present

Online Marketing for Research in Marketing- myassignmenthelp.com

Question: Discuss about theOnline Marketing for Research in Interactive Marketing. Answer: Introduction Online marketing is one of the major market changing idea that came into existence in the recent times. The 1st idea of this is came to the founder of the Amazon.com, which is in the worlds largest online retailing platform. The online markets provides the customer with the unique ability to sit in own place and buy the things required without even moving from the place (Schaupp and Carter 2016). With the introduction of the online marketing the people had the opportunity to buy the products that were once not available in many zones. But with the introduction of the new techniques and technologies there comes some major ethical issues and legal issues. This research focuses on some of the major ethical and illegal issues that may rise with the time in the field of the online marketing. Research Background This aim of this research is about the issues and ethics issues when conducting research in the field of e-commerce and online marketing. Described in this section is similar to the work described in the previous section (Jones, et al., 2014). The research focus on the main ethical issues, security issues related with the concept. Also the paper discusses about the pros and the cons of the online marketing which affects the users daily life in the daily life. Similar work has been performed in the past but the works does not provides us from the view of the clients or the customer (Pires and Stanton 2015). There had been many papers published in the past but none of the papers focussed on the customer side aide. According to the Jones and his fellow researches use of the mobile technology and is somewhat crating the problems in the ethical problems. This paper also investigates the security issues of the online web sources. Purpose of the study The main purpose of the study is to bring out the the importance to implement the ethics in business in the field of the e-commerce especially when the value of the online marketing is increasing day by day. Further the paper also the paper focuses on the ethical issues that benefits the users (Morga and Pritchard 2018). This thesis will focus on the users perspective and the issues that the customer faces. Further the research will also explore the various. This paper also investigates about the issues related to the use of the smartphone application affecting the ethical issues of the customers. Research problem and methodology: Based on the study and the purpose of the report the research will be able to answer the following questions: What are some of the main ethical issues related to online marketing? What are some of the pros and cons of this research? How the organisation uses the privacy policy and secretly to maintain to solve the ethical problems of the users? Pros and Cons of research Pros of the research: This paper deals with the ethical issues that are related with the online marketing and ecommerce websites (Agag et al. 2016). The e-marketing is one of the major topic in the world today as no people in the world is there who have not even once heard of the term online marketing. This research brings out some of the major factors that may hurt the sentiments of the normal people (Limbu, Wolf and Lunsford 2012.). Also this paper brings out the security concerns of the people that they may face while using an online marketing website. This issues are ethical dilemmas that the people may face, for example of this the some of the online websites seels the doormats printed with the other country flags, and this is one of the major disrespect to the country and people of that country (Tandoc Jr and Thomas 2015). This research highlights some of such issues. Cons: Some of the major cons of this paper is that the factor that it brings out the harsh reality of the business strategy of the organisations. These are some of the major big organisations that rules the business word of the organisation. This paper is unable to bring out and highlight all the factors that are responsible for the unethical practices that are going on in the organisations. Ethics Issues, Integrity and Safety Issues, and risks Some of the major ethical issues and the safety of the clients are discussed in this section. Ethical Issue: Anything that hurts the sentiments of the any person can be called an ethical problem. Some of the major ethical problems that the customers face are high pricing of the products, selling of the products that are somewhat illegal. Storing personal datas in the websites are some of the major ethical issues. Security and the Risks: Although the organisations provides many security options for the customers, but there always lies some of the major risks. Some of the security that the organisations provide their clients are, secured payment methods, safe browsing of the products, replacement options. But there always lies some of the risks, like the stealing of the private data from the users device. One of the other major risk is that the information of the product that is provided can be incorrect. Response plan to the issues and risks Some of the major things that can be done in order to reduce the risk that are related to the online marketing is checking the authenticity of the products. Checking whether the product is genius or not, or if there is any copyright protection to the product. Also the customers can ask for the authenticity of the products. Conclusion Thus, concluding the topic it can be said that the online marketing is one of the most growing business in the world and more and more organisations are coming to the sections. The organisation are trying to provide as much of the security needed to provide the customers but are failing somehow. As a customer one needs to verify the authentication of the product, the price tags and other issues related. IT is the work of the organisation to look in the factor that no unethical practices goes on in the working process of the business as that may hamper the productivity of the organisation. References Agag, G., El-masry, A., Alharbi, N.S. and Ahmed Almamy, A., 2016. Development and validation of an instrument to measure online retailing ethics: Consumers perspective.Internet Research,26(5), pp.1158-1180. Jones, B. H., Chin, A. Aiken, P., 2014. Risky business: Students and smartphones. TechTrends, 58(6), pp. 73-83. Limbu, Y.B., Wolf, M. and Lunsford, D., 2012. Perceived ethics of online retailers and consumer behavioral intentions: The mediating roles of trust and attitude.Journal of Research in Interactive Marketing,6(2), pp.133-154. Morgan, N. and Pritchard, A., 2018. Gender, Advertising and Ethics: Marketing Cuba.Tourism Planning Development,15(3), pp.329-346. Pires, G.D. and Stanton, J., 2015. Revisiting ethnic marketing ethics.The Routledge Companion to Ethnic Marketing, p.327. Schaupp, L.C. and Carter, L., 2016. Ethics and social networking: An interdisciplinary approach to evaluating online information disclosure.International Journal of Systems and Service-Oriented Engineering (IJSSOE),6(2), pp.1-28. Tandoc Jr, E.C. and Thomas, R.J., 2015. The ethics of web analytics: Implications of using audience metrics in news construction.Digital Journalism,3(2), pp.243-258. Yakovenko, I. et al., 2015. The efficacy of motivational interviewing for disordered gambling: systematic review and meta-analysis.. Addictive Behaviors, Volume 43, pp. 72-82.