Series 7 Exam Prep "Ford Bond, not James Bond". SIE Exam & Series 6 Exam & Series 65 Exam too!

Watch this next Series 7 Exam Prep Municipal Bonds.  ...
Corporate Debt Securities.
Lecture 2 of 2
00:00 Capitalization of a Corporation lecture 2 of 2
0:52 Nominal yield does not change
Nominal
Coupon
Stated
Most bonds today are fully registered
7:40 Yield to price or price to yield
What it pays you ÷ what it costs you = current yield
Bond seesaw and using it
When quoting premium bond YTC
When quoting discount bond YTM
Types of risk, interest and callable
24:00 Current yield Very Testable
Annual interest ÷ current market price = current yield
29:22 Yield to price or yield to call
35:53 Yield to worst either YTM (basis) or YTC
40:24 Bond ratings Quality
Bonds under BBB are less than investment grade quality
43:14 Unsecured Debt
Debenture Full faith and credit
Sub Debentures
Convertible Debentures
Guaranteed bond
Income or adjustment bond trades flat
Zero coupon no call risk, no reinvestment risk. Set sum of money at future date. Good for college funding
53:41 Types of secured bonds
Mortgage bonds, real property
Collateral trust bonds, marketable securities placed in escrow. Equipment trust certificates, major movable equipment
58:36 Priority in liquidation Very Testable
Secured bonds
Unsecured bonds
Preferred stock
Common stock (junior stock)
Know that theoretical liquidation value is book value
1:00:31 Convertible bonds Very Testable
Parity of bond = CMP of stock X conversion ratio
Parity of stock = CMP of bond ÷ Conversion ratio
1:02:49 Calculating parity of bond
1:06:10 Calculating Parity of stock
1:06:59 taxation of corporate debt
Interest
Capital gains
1:10:40 conclusion