Original Work Statement – Verify the review is original work prepared solely for the class by...

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Original Work Statement – Verify the review is original work prepared solely for the class by including the following: “I, (insert your name), verify that this article review is solely my own work and creation and it has been prepared for credit in this class.”  	Clearly & succinctly summarize the MAIN ISSUE you’re discussing. Relate the article to how the material relates to Financial Markets: Capital Sources, Liquidity and Risk     	Provide your own reaction or observation regarding the content of the chapter and your article. Indicate what you think of the content, its significance and implications.     	Complete source citation (author, date, article title, publication title, etc.) and how/where source was accessed.     	Clearly state how the outside source relates to chapter in the book and how the topic relates to the course or material in the textbook: briefly discuss what sections, chapters, and/or concepts of this course are related to your article.  Communicate a clear message that your peers can follow and understand, and learn from. DO NOT “DATA DUMP.”The review will be evaluated on the clarity, efficiency, and effectiveness of communication of the main issues, the relevance to finance and this course, the appropriate use of financial terms, the level of thought communicated, grammatical accuracy (spelling, sentence structure), etc.Chapter 7: Bond Markets related to this article is in the textbook Financial Markets and Institutions (10th ed) written by Jeff Madura.
	
Document Preview: Article ReviewGraduate Students: Submit a report of 4-6 pages (double space and 6 pages maximum+ appendices).Students must properly cite the article (author, date, journal publication, etc.). If you obtained a copy via Internet resources, provide explicit instructions on how to obtain the article via the Internet.  This citation - source information should appear in an appendix, which is NOT part of the main body.  All student submissions must be originally created for this course.  PROPER CITATIONS IS ESSENTIAL, INSTANCES OF PLAGIARISM WILL RESULT IN CONSEQUENCES SUCH AS FAILING THE ASSIGNMENT, COURSE, OR BEING REMOVED FROM THE PROGRAM.The key requirement is that the articles MUST address an international finance issue/concept.  Your review should clearly: Original Work Statement – Verify the review is original work prepared solely for the class by including the following: “I, (insert your name), verify that this article review is solely my own work and creation and it has been prepared for credit in this class.”Clearly & succinctly summarize the MAIN ISSUE you’re discussing. Relate the article to how the material relates to Financial Markets: Capital Sources, Liquidity and Risk Provide your own reaction or observation regarding the content of the chapter and your   article. Indicate what you think of the content, its significance and implications.Complete source citation (author, date, article title, publication title, etc.) and how/where source was accessed.Clearly state how the outside source relates to chapter in the book and how the topic relates to the course or material in the textbook: briefly discuss what sections, chapters, and/or concepts of this course are related to your article.Communicate a clear message that your peers can follow and understand, and learn from. DO NOT “DATA DUMP.”    The review will be evaluated on the clarity, efficiency, and effectiveness of communication of the main issues, the relevance to finance and...

David · Accepted Answer

Article Review: Custom bond valuations can save clients’ money 
Introduction 
 The financial market is the market where the trading of equity as well as bonds takes 
place. This is the market where the major sale and purchase of the investments and financial 
instruments takes place. This market is high influenced by the economic condition as well as the 
monetary as well as fiscal policies.   
The financial market integration and the interest fluctuation aims in adjusting the 
economic difficulties that are being faced by the Federal Reserve, so as to manage the economic 
crisis and economic activity across the US market. Along with the integration across the globe, 
any variation and the interest rate change will result in additional interest rate risk fluctuation 
across the countries. With the increase in the financial market integration, the Federal Reserve 
Bank is strongly focusing on integrating all the adjustments that have come across in the market. 
There have been wide fluctuations and interest are movements with the financial market 
integration which are being adjusted. Along with the change in the interest rates, there have been 
wide development that has been faced by the companies with the integration which includes 
technological and economic development.  
Bond Issue and valuation 
A bond is one the asset which has low risk and helps in tax savings. A bond is therefore a 
financial contract, in effect an IOU from the person or body that has issued the bond. Unlike 
shares or equity capital, bonds carry no ownership privileges. An investor who has purchased a 
bond and thereby lent money to an institution will have no voice in the affairs of that institution 
and no vote at the annual general meeting. The bond remains an interest-bearing obligation of the 
issuer until it is repaid, which is usually the maturity date of the bond. The issuer can be anyone 
from a private individual to a sovereign government. 
Bond investment and stock investment are two different things. In bond investing the investor 
invests in the debt instrument that is issued by a company or government. The bond investor 
lends the money to the company while in return is promised to be paid the full principal amount 
plus a fixed periodic payout.  
Yield is the effective interest rate during the tenure of the bond. It is calculated by putting 
together the final principal and total payouts received. The yield is the effective interest rate for 
the tenure of the bond. 
Monetary policy and bond market 
The current international monetary system is dollar based and has number of defects 
which is inherent in this system based on national currencies. The basic and fundamental 
problem is an unequal distribution of the benefits and costs associated with the financing and 
adjustment of balance of payments adjustment. The countries whose currency play key role in 
international monetary system are the beneficiaries of this system as these economies benefits 
through their autonomy over domestic macroeconomic policy, competitive edge in financial 
markets, relatively low borrowing costs and through very little pressure to adjust their balance of 
payments. While the countries whose currency (for example developing countries like India, 
Brazil) is not key currency in the international monetary system are required to operate within 
balance of payment constraint and are required to bear the much of the external costs associated 
with changing international economic and financial scenario.

Original Work Statement – Verify the review is original work prepared solely for the class by including the following: “I, (insert your name), verify that this article review is solely my own work and...

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