The Riskiness of Governments and Corporate Bonds

Question: Discuss about the Riskiness of Governments and Corporate Bonds. Answer: Introduction Governments bonds or corporate bonds are loans to the government or the company respectively. The decision to loan to these parties is based on the risk involved. Thus, the buyers of the bond are attracted to bonds with the highest returns. This is irrespective of the possibility of risk. If two different bonds are giving the same yield, the investors only concern when making a decision is that of the quantity of risk involved. Safeness of Government Bonds When it comes to government bonds, these are the safest investments. The explanation for this is that; the investor is assured that the full loan amount will be repayable after the maturity period. In comparison to the company bonds, buying company bonds may result in the investors losing their money in case there was a companys bust. O'Shea (2017) noted that the government in case it runs out of money would control its currency and can print money so that it pays its obligations. He also stated that the return on the government bonds is on a risk free rate. There is zero probability of default on government bonds (Conley, 2016). Thus, even if the rate of a governments bond falls slightly below that offered by a company, a rational investor would still go for the governments bond. Now lets consider the short run case. OShea noted that the governments bond are the most risky in the short run. These bonds are considered risk free on the assumption they are held till maturity (Kenny, 2017). This is because an increment in interest rate would result in a fall in the bond prices. If interest rate rises by a units, the fall in price would be very high. If the bonds were to be cashed after such a change, the value would be lower. Thus, the government bonds are faced by risk if the current interest rate is low. For these bonds to be risk free both in the short and in the long run, the interest rate must be currently high. In addition to the interest rate risk, Conley (2016) also noted the risks of inflation and opportunity cost. High inflation rate lowers the value of treasury investments and opportunity cost is incurred since other investments with a higher return are disregarded. The Riskiness of Corporate Bonds Unlike the government bonds, there are many other risk factors facing the corporate bonds. There are far away from being risk free. They are considered the most risky bonds. In additional to the risk factors of interest rate and inflation rate experienced in both the government and corporate bonds, there are several other risk factors for the latter. One is the risk of credit/default; there is the possibility that the company may fail to pay back the investors money. Curtis (2017) noted that many investors are not aware that the governments full faith and credit does not guarantee the corporate bonds. Instead, they are guaranteed by the ability of the company to pay the debt. Therefore, investors should use the coverage ratio to determine the possibility of default. A higher ration deems the investment to be safe. Two, the rating downgrades; if a company is rated low in its debt repayment, interest rate charged on future loans by lending agencies and banks goes up (Lo?ffler and Posch, 2011). For this case, the ability of a company to satisfy its debts is adversely impacted. Three, liquidity risk owing to the market for corporate bonds being so thin and thus the ability to sell the bonds quickly is reduced. Four, the call risk; where the bond issuer may repurchase the bond for instance in interest rate goes to low (Langager, 2017). Conclusion Low interest government bonds taken for a long term are risky although they would be labelled risk free. Any investor who is about to make the decision to invest on government bonds should consider the interest rate factor. When the interest rate is low, its expected to rise, but when it is very high, it is guaranteed it will come down after some time since a high interest rate is not sustainable in an economy. A fall in interest rate makes the bond prices to rise. Therefore, the investment is good with high interest rate. Investors to corporate bonds should first determine the possibility of default before initiating the investment. There are higher risks associated with corporate bonds. References Conley, P. (2016). Are Treasuries Really the Safest Investment? [Online] The Balance. Available at: https://www.thebalance.com/what-is-the-safest-investment-417037 [Accessed 7 Apr. 2017]. Curtis, G. (2017). Six Biggest Bond Risks. [Online] Investopedia. Available at: https://www.investopedia.com/articles/bonds/08/bond-risks.asp [Accessed 8 Apr. 2017]. Kenny, T. (2017). What Types of Bonds Feature Low Risk? [Online] The Balance. Available at: https://www.thebalance.com/lowest-risk-bonds-what-types-of-bonds-are-the-safest-417025 [Accessed 7 Apr. 2017]. Langager, C. (2017). What are the risks of investing in a bond? [Online] Investopedia. Available at: https://www.investopedia.com/ask/answers/05/bondrisks.asp [Accessed 8 Apr. 2017]. Lo?ffler, G. and Posch, P. (2011). Credit risk modeling using Excel and VBA, second edition. 1st ed. Chichester, West Sussex, U.K.: John Wiley Sons Ltd. O'Shea, T. (2017). Are Governments Bonds Safe? [Online] timoshea.co.uk. Available at: https://www.timoshea.co.uk/are-governments-bonds-safe/ [Accessed 7 Apr. 2017].

Romeo Juliet Act IV Literary Devices Flashcard

Romeo Juliet Act IV Literary Devices

Why Are You Interested in This Community College Sample Essay?

Why Are You Interested in This Community College Sample Essay?For the past year or so, I have received a number of questions from parents about why are you interested in this college or this community college. Here is my response to their query. When you are asked that question, there is a good chance that you will be looking at your college application and you will want to get your college to fit in well with what you are looking for.It is very important that you give special attention to your college because that will be the first thing that you see when it comes time to put together your college applications. Therefore, what you need to do is to make sure that you have an essay that will show your own personal involvement in your career or your student's future. This might seem like a daunting task but it actually can be easy to do and you should take the time to do it correctly.The first thing that you want to consider is whether or not you have an interest in the course you are taking. If you have no interest in a particular course or class, that means that you are probably not going to be able to make it through the course with the necessary work load or that you do not enjoy the subject matter. Therefore, your own individual essay needs to include information about why you feel that you are best suited for the particular class or you love this career.One of the easiest ways to do this is to use an essay on a community college based on something that you are familiar with and something that relates to your chosen career. Whether it is an occupation, a hobby, or a favorite color, use that in the middle of your college application and you will be able to really relate it to the area where you will be attending school. It will also help you make a compelling argument that is something that you would have to write if you were applying to a four-year institution.Another reason why you should look at writing a college sample essay at a community college is that it is easier to write at this level because you are not confined to the structure of a college course. You will still have to give thought to your topic but you can make a persuasive case that you have enough information to do so. Furthermore, you have a very limited vocabulary with which to express yourself. By using a great community college writing sample, you can make your college essay very successful.However, if you are doing this as a favor to your parents, be very careful. You will likely be asked to prove why you should be at a community college. Make sure that you are being truthful and professional but you will want to avoid being overly complex.In conclusion, I would strongly recommend that you write a college sample essay at a community college. I would also highly recommend that you find out what is required of you when writing your essay at a community college so that you can make sure that you are doing it correctly.

People Watching Too Much Tv Essays

People Watching Too Much Tv Essays People Watching Too Much Tv Essay People Watching Too Much Tv Essay In the modern competitive market, it is imperative for organizations and institutions to utilize available resources efficiently to be ahead of the competitors. Highly skilled employees are in high demand by various organizations to increase productivity. Consequently, human resources must be carefully managed through recruitment, selection and onboarding (Hernandez amp; Connor, 2010).Therefore, this essay will discuss the importance of recruitment, selection and onboarding in an organization. Recruitment refers to the process of seeking out candidates for employment and motivating them to apply for posts in an organization (Hernandez amp; Connor, 2010). It involves attracting potential employees to express their interest in working for the organization. It creates a pool of applicants from which the right candidates can be selected. This can take place through advertisement in print media, radio and television, or online advertisements. It is the first link between job seekers and e mployers.Recruitment is a significant process because it discovers the sources of manpower to meet the staffing requirements of the organization (Dowell, 2010). Effective measures must be laid down in order to attract the best manpower by outlining the requirements of the position and qualifications. This will lead to the employment of only those individuals with the desired skills, which can add value to the organization. Once the applicants express their interest, selection exercise takes place. Selection is the process of choosing and determining the applicants with higher possibility of succeeding in a job (Hernandez amp; Connor, 2010).It involves picking applicants with appropriate qualifications and the required competency for a given task. The candidates undergo a preliminary interview or screening before selection tests and finally the selection interview. The objective of selection exercise is to gather, organize and evaluate relevant information and assess each candidate i n order to foretell applicant’s job performance (Dowell, 2010). The applicants acquire information, which assists them in judging whether they wish to accept the job or not.This ensures employment of the right individuals to avoid high employee turnover and the costs that come with it. Onboarding refers to the process of assisting new employees to become productive members of an institution (Hernandez amp; Connor, 2010). It involves orientating, assimilating and integrating the employee into the institution. It enhances the effectiveness by receiving and preparing new workers for various tasks. The employee becomes comfortable and fully operational in the new environment within a short time. A well onboarding program enhances retaining of employees in the organization (Dowell, 2010).In conclusion, recruitment, selection, and onboarding are pertinent processes in an organization. These ensure employment of the best talents from a large pool of candidates. This increases employ ee’s productivity placing the organization at the top of the competition. References Dowell, B. E. (2010). Strategy-driven talent management: a leadership imperative. San Francisco, Calif: Jossey-Bass. Hernandez, S. R. , amp; Connor, S. J. (2010). Strategic human resources management in health services organizations (3rd ed. ). Clifton Park, NY: Delmar Cengage Learning.

Georgian Speekle - A Giant Isopod

Georgian Speekle - A Giant Isopod The Georgian speekle is the name given to a giant isopod that was found in the state of Georgia in the United States. Photos of the monstrous-looking creature went viral on the internet, leading to comments like Fake! and Photoshop. However, the animal really does exist and yes, it really is over a foot long. Is an Isopod a Bug? No, the Georgian speekle is not an insect or a bug. One defining characteristic of an insect is that it has six legs. The speekle has many more than six appendages. A bug, on the other hand, belongs to the order Hemiptera and mostly resembles an insect, except it has hardened wings and sucking and piercing mouthparts. The speekle is a type of isopod. Isopods dont have wings, nor do they bite like bugs. While insects, bugs, and isopods are all types of arthropods, they are in separate groups. An isopod is  a type of crustacean, related to crabs and lobsters. Its closest land relatives are pill bugs or the common woodlouse. Of the 20 or so species of isopods, the largest is the giant isopod Bathynomus giganteus. How Big Is the Giant Isopod? While B. giganteus is an example of marine gigantism, its not particularly huge. Its not on the order of, say, a giant squid. A typical isopod is around 5 centimeters long (about 2 inches). An adult B. giganteus can be 17 to 50 centimeters (6.7 to 19.7 inches) long. While thats large enough to look scary, the isopod doesnt pose a threat to people or pets. Giant Isopod Facts B. giganteus lives in deep water, off the coast of Georgia (USA) to Brazil in the Atlantic, including the Caribbean and the Gulf of Mexico. Three other species of giant isopods are found in the Indo-Pacific, but none have been found in the East Pacific or East Atlantic. Because its habitat is largely unexplored, additional species may await discovery. Like other types of arthropods, isopods molt their chitin exoskeletons as they grow. They reproduce by laying eggs. Like other crustaceans, they have blue blood, which is really their circulatory fluid. The hemolymph is blue because it contains the copper-based pigment hemocyanin. Most photographs of isopods show them as gray or brown, but sometimes a sick animal appears blue. Although they look intimidating, isopods arent aggressive predators. Rather, they are opportunistic scavengers, mostly living on decaying organisms in the seas benthic zone. They have been observed eating carrion, as well as small fish and sponges. They use their four sets of jars to tear apart their food. Isopods have compound eyes that have over 4000 facets. Like cat eyes, isopod eyes feature a reflective layer at the back that reflects back light (the tapetum). This enhances their vision under dim conditions and also makes the eyes reflective if a light is shined on them. However, its dark in the depths, so isopods probably dont rely much on sight. Like shrimp, they use their antennae to explore their environment. The antennae house chemoreceptors which can be used to smell and taste molecules around them. Female isopods have a pouch called a marsupium that holds eggs until they are ready to hatch. Males have appendages called peenies and masculinae used transfer sperm to the female after she molts (when her shell is soft). Isopods have the largest eggs of any marine invertebrate, measuring about a centimeter or half an inch in length. Females bury themselves in sediment when they are brooding and stop eating. The eggs hatch into animals that look like their parents, except smaller and missing the last pair of legs. They gain the final appendages after they grow and molt. In addition to crawling along in the sediment, isopods are skillful swimmers. They can swim either right-side up or upside-down. Isopods in Captivity A few giant isopods have been kept in captivity. One specimen became famous because it wouldnt eat. This isopod appeared healthy, yet refused food for five years. It eventually died, but its unclear whether starvation is what killed it. Because isopods live on the sea floor, they can go a very long time before encountering a meal. Giant isopods at the Aquarium of the Pacific are fed dead mackerel. These isopods tend to eat four to ten times a year. When they eat, they gorge themselves to the point where they have trouble moving. Although the animals arent aggressive, they do bite. Handlers wear gloves when working with them. Like pillbugs, giant isopods curl up into a ball when threatened. This helps protective their vulnerable internal organs from attack. References Lowry, J. K. and Dempsey, K. (2006).  The giant deep-sea scavenger genus Bathynomus (Crustacea, Isopoda, Cirolanidae) in the Indo-West Pacific.  In: Richer de Forges, B. and Justone, J.-L. (eds.), Rà ©sultats des Compagnes Musortom, vol. 24. Mà ©moires du Musà ©um National d’Histoire Naturalle, Tome 193: 163–192. Gallagher, Jack (2013-02-26). Aquariums deep-sea isopod hasnt eaten for over four years. The Japan Times.  retrieved 02/17/2017

Waste Essay Example | Topics and Well Written Essays - 250 words - 1

Waste - Essay Example 1). A complete elimination of waste from the waste stream however starts with responsibility of individual people who use the materials for packaging, the consumers of the packed goods and users of other commodities that turn into wastes. The users, instead of passing the waste disposal burden to the authorities, can more effectively eliminate these wastes from the waste stream. One of the most effective ways to eliminating wastes from the waste stream is by using materials that can easily be recycled. Manufacturers can for instance eliminate wastes by producing plastics, wrappers and other commodities that can easily be recycled. Similarly, individuals can facilitate elimination of wastes by recycling materials whenever possible. Another approach towards eliminating wastes from waste stream is the reuse of materials. This approach retains the materials usefulness, meaning that the materials will not become wastes and will not be taken to the waste cycle (Zbore, p. 1). Zbore, Tammy. (2011). ‘Making it go â€Å"away†- waste reduction strategies for cities.’ National League of Cities. Available from: http://citiesspeak.org/2011/04/19/making-it-go-%E2%80%9Caway%E2%80%9D-%E2%80%93-waste-reduction-strategies-for-cities/. [Accessed on 30 March

Balancing Work, School, and Family Life Essay Example | Topics and Well Written Essays - 750 words

Balancing Work, School, and Family Life - Essay Example Human capital is fundamental for high productivity levels, stable personal relationships and successful educational pursuits. Reconciliation of work, education and family obligations is becoming a challenge to numerous persons and hindering substantial progress in each of these sectors (Mettler, 2007). The effective integration of these functions requires strategic planning that will enable allocation of ample time to each segment. Occupation and family constitute a chief part of women’s lives, and a considerable number of them are opting to forego the maternal route and solely focus on their careers. This paper examines the challenges of effectively integrating work, family and educational obligations and analyzes strategies to overcome the imbalance. Challenges of Balancing Work, School, and Family Life Work and educational and family responsibilities are not easily compatible especially if one is demanding significantly more time than the other. The urgency to generate suff icient income through undertaking more courses and the yearning to endow one’s children with utmost concern do not have to be equally exclusive. Numerous organizations and individuals perceive this as an escalating societal challenge that can affect the productivity of their employees. One of the challenges of this balancing act is increased workload; in instances where an employee’s job specification entails numerous responsibilities, it will be difficult to allocate time to indulge in family functions. The employee is bound to direct effort to their professions, and this can harm the child development. The absence of personal attention to the child during his/her development can influence that child to seek that attention elsewhere (Mettler, 2007). The likelihood of this child partaking in devious endeavors is high since the parents are not close to monitor his activities. In addition, in the contemporary societal arrangement women are increasingly becoming career or iented. Their ambition contradicts their former roles that were to manage the domestic duties including nurturing children to a level of self-sufficiency. The alterations of these responsibilities are due to economic conditions and shifting of societal perceptions that women need to match up to their male compatriots. There is a rise in the employment rates of women illustrating that this is a growing trend. Numerous women who are committed to extreme occupations tend to refer their children to daycare centre’s relieving themselves of the liability of monitoring the child’s actions (Mettler, 2007). The delegation of their parental responsibilities can haves serious implications for the family cohesion. Secondly, the current society advocates for high educational and professional threshold that individuals must attain. This increases the pressure to fulfill the necessities of these two obligations. Organizations nowadays engage in numerous transactions that require the employees to dedicate themselves wholly to their occupations to avoid impending discrepancies that can occur. For a learning employee, prolonged hours in a workplace can impede his performance in educational exams (Mettler, 2007). The insufficient attention to academic work and parental obligations initiate constraints, which impede the productivity of the employee. Moreover, these three obligations