PADP 6930 Lecture Notes - Lecture 14: Interest, Capital Market, Underwriting

• School: University of Georgia
• Department: Public Administration and Policy
• Course: PADP 6930
• Professor: Moldogaziev

Document Summary

Lecture 14 : debt & bond markets: bringing the debt issue to market: institutional players & information flows, methods of sale (a) competitive (auction) bid. Rfps (c) private placement (d) awarding bids by: (1) net interest cost (nic) Average interest cost rate on a bond issue calculated on the basis of simple interest. The interest rate that discounts the debt service payable for a bond issue to its present value, or net proceeds. Serial bonds: credit rating agencies, credit enhancement, the origination process. Re ect both the monthly capital gain & loss on bonds plus any interest (coupon) income earned. Changes in values of bond indexes can be used by bond traders to evaluate changes in the investment attractiveness of bonds of different types & maturities. Major issue of debt market securities > federal, state, & local governments, & corporations.