main advantages and disadvantages of CAT bonds compared to (re)insurance from the perspective of the party seeking protection. The first main advantage of CAT bond compared to reinsurance‚ in terms of the party seeking protection‚ the Sponsor‚Munich Re in our case‚ is that CAT bond ‚which is Queen Street II Captial Ltd in our case ‚allows the Munich Re to transfer the catastrophe risks (North Atlantic U.S.hurricane and European windstorms) to the CAT bond investors via SPRV‚ Queen Street II Capital
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Mid Term – October 2014 Bond Pricing Qu 1: Time to Maturity Zero Coupon Rate Discount Factor 1 5% 2 6% 3 7% 4 8% 5 9% Give the formula for the discount factor in terms of the zero coupon rate. Use the formula to fill in the discount factors in the table above (you can write the formula or using excel calculate the numerical value). Assume that the government wishes to issue a new 5 year bond priced at 100 (called a par coupon bond as it is priced at par i.e. the price is the same as the face
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US Savings Bond A US savings bond is a security issued by the US treasury and began being issued during president Roosevelt’s presidency in 1935. A month after the president sign the legislation‚ the first savings bond was issued with a purchase price of 18.75‚ but a face value of $25. These first bonds were eventually nicknamed “the baby bonds”. When bonds first became big was during the US’s involvement with WWII in 1941. These bond were called the Series E Defense bonds and they went towards
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Stocks versus Bonds: Explaining the Equity Risk Premium Clifford S. Asness From the 19th century through the mid-20th century‚ the dividend yield (dividends/price) and earnings yield (earnings/price) on stocks generally exceeded the yield on long-term U.S. government bonds‚ usually by a substantial margin. Since the mid-20th century‚ however‚ the situation has radically changed. In addressing this situation‚ I argue that the difference between stock yields and bond yields is driven by the long-run
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Bond Case Sam Strother and Shawna Tibbs are vice presidents of Mutual of Seattle Insurance Company and co-directors of the company’s pension fund management division. An important new client‚ The North-Western Municipal Alliance‚ has requested that Mutual of Seattle present an investment seminar to the mayors of the represented cities‚ and Strother and Tibbs‚ who will make the actual presentation‚ have asked you to help them by answering the following questions. What are the key features of a
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|Ruskin Bond | |[pic] | |Ruskin Bond in a Meet the Author program at Sharjah International Book Fair‚ | |23 November 2011 | |Born |19 May 1934 (age 78) | | |Kasauli‚ Solan Himachal Pradesh‚ India | |Occupation
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by chemical bonds. These chemical bonds are of two basic types—ionic and covalent. Ionic bonds result when one or more electrons from one atom or group of atoms is transferred to another atom. Positive and negative ions are created through the transfer. In covalent compounds no electrons are transferred; instead electrons are shared by the bonded atoms. The physical properties of a substance‚ such as melting point‚ solubility‚ and conductivity‚ can be used to predict the type of bond that binds
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INTRODUCTION TO CHEMICAL BONDS CHEMICAL BOND Definition: A chemical bond is defined as a force that acts between two or more atoms to hold them together as a stable molecule. Main types of bond: 1. Ionic or electrovalent bond‚ 2. Covalent bond‚ 3. Coordinate covalent bond Forth type of bond: Metallic bond: The type of bonding which holds the atoms together in metal crystal. Valence electron: The electrons in the outer most energy level in an atom that takes part in chemical
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Catastrophe Bonds By Kirill Graminschi The trouble with Catastrophe Bonds The article presents the difficulties insurance companies face when they are issuing catastrophe bonds. Do they efficiently hedge against large-scale disasters? It is very difficult hedging against catastrophic losses. Japan’s March earthquake‚ tsunami and nuclear disaster threat could cost the insurance industry between $21 and $34 billion. The catastrophe bonds are not helping much the insurance companies‚ although
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CHEMICAL BONDS Chemical Bonds I. Introduction Chemical compounds are formed by the joining of two or more atoms. A stable compound occurs when the total energy of the combination has lower energy than the separated atoms. The bound state implies a net attractive force between the atoms called a chemical bond. The two extreme cases of chemical bonds are the covalent bonds and ionic bonds. Covalent bonds are bonds in which one or more pairs of electrons are shared by two atoms. Covalent bonds‚ in
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