- •Unit the capital and bond market
- •Eurozone problems weigh heavily on equity capital markets
- •Exercises
- •Find in the text Ukrainian equivalents to the following words and word combinations and translate the sentences in which they are used.
- •Find in the text English equivalents to the following words and word combinations. Write your own sentences using them.
- •Here are some word-combinations from the text. Match and translate them into Ukrainian.
- •Match the sentence beginnings (1- 5) with the correct endings (a –e).
- •Match words and phrases in the box with their definitions.
- •Answer the questions.
- •Complete the sentences, using expressions from the box. Translate the sentences into Ukrainian.
- •Characteristics of Corporate Bonds
- •Read the text. Explain the following word combinations. Summarize the text in 50 words.
- •Call provisions
- •Match the responses on the right with the questions on the left.
- •Work in pairs. Discuss advantages and disadvantages of different types of bonds. Make up your own dialogues using the following words and word combinations.
- •Complete the following.
- •Answer the questions. Look at the text to help you.
- •Translate into English. Світовий ринок облігацій
- •Mark these statements t (true) or f (false) according to the information studied in the text and in the exercises. Correct them where necessary.
- •Listening
- •A). Listen to the text and complete the sentences with the necessary word combinations from the list.
- •Call provisions
- •Supplementary tasks
- •Study the images of the given bonds. Define their types, denomination| (face value), maturity, interest rates, issuers, and other information.
- •Helpful phrases for writing a summary.
- •Table 2 debt ratings
Match words and phrases in the box with their definitions.
1. |
Covenant |
a. |
a contract in which the writer (seller) promises that the contract buyer has the right, but not the obligation, to buy or sell a certain security at a certain price (the strike price) on or before a certain expiration date, or exercise date. |
2. |
Revenue bond |
b. |
a bond with a low rating. |
3. |
Junk bond |
c. |
a bond issued by a municipality to finance either a project or an enterprise in which the issuer pledges to the bondholders the revenues generated by the operation of the projects financed. |
4. |
Treasury notes |
d. |
assets pledged as security for a loan. |
5. |
Mortgage bond |
e. |
a debt security, issued by a government or large company, that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. |
6. |
Unsecured Bond |
f. |
the contract that accompanies a bond and specifies the terms of the loan agreement. |
7. |
Indenture |
g. |
a clause in a loan agreement written to protect the lender's claim by keeping the borrower's financial position approximately the same as it was at the time the loan agreement was made. |
8. |
Variable-rate bond |
h. |
the method where the security certificate is not actually given to the holder. |
9. |
The book entry method |
i. |
a debt security backed by the full faith and credit of the United States government with a maturity between one and 10 years. |
10. |
Futures |
j. |
note whose interest payment varies with short-term interest rates.
|
11. |
Collateral |
k. |
involve a financial contract that requires the buyer to purchase an asset (or the seller to sell an asset), such as a physical commodity or a financial instrument, at a specific price on a predetermined date in the future. |
12. |
Option |
l. |
long-term bond secured by the payments on one or more mortgages. |
Fill in the table with the appropriate descriptions of the bond terminology.
1. |
Coupon interest rate |
a. |
The contract that accompanies a bond and specifies the terms of the loan agreement. It includes management restrictions, called covenants. |
2. |
Current yield |
b. |
The yield an investor will earn if the bond is purchased at the current market price and held until maturity. |
3. |
Face amount |
c. |
The interest rate currently in effect in the market for securities of like risk and maturity. The market rate is used to value bonds. |
4. |
Indenture |
d. |
The same as face amount. |
5. |
Market rate |
e. |
The maturity value of the bond. The holder of the bond will receive the face amount from the issuer when the bond matures. Face amount is synonymous with par value. |
6. |
Maturity |
f. |
The stated annual interest rate on the bond. It is usually fixed for the life of the bond. |
7. |
Par value |
g. |
The number of years or periods until the bond matures and the holder is paid the face amount. |
8. |
Yield to maturity |
h. |
The coupon interest payment divided by the current market price of the bond. |