DRAFT ~~~ DRAFT ~~~ DRAFTv. 2007-12-26
Financial Integrity
Resources
Online Resources
Such as:
Blank and sample worksheets
Wall chart samples and blanks.
Monthly tabulation categories and subcategories
Step 1: Balance Sheet: Assets and Liabilities
Case studies
ADDITIONAL RESOURCES
The Simple Living Network
Affluenza – book
“How Earth-Friendly Are You? A Lifestyle Self-Assessment Questionnaire.” A tool for examining lifestyle choices in the context of personal values and
planetary sustainability.
Bond glossary below: what good websites provide this information – link on the wiki. What other opportunities are there to get the return that Bonds have traditionally provided? Annuities?
Bond Glossary
Which ones should we include?
(refer to online resources and current publications for the latest information)
accrued interest: interest due from the last interest payment to the present day; when you buy a bond, you must pay the seller the accrued interest, andwhen you sell, the buyer pays you.
agency bond or note: the IOU of the Federal government, sometimes guaranteed by the government itself.
asked: the price at which bonds are offered to potential buyers; or the price sellers offer to take.
basis point: in quoting yield, a basis point is 1/100 of a percentage point or 0.01%.
bearer bond: a bond which is presumed to be owned by the person who holds it; the owner’s name is not on record with the issuer; such a bond carries detachable interest coupons; interest is collected by presentation of a coupon to the issuer’s agent or the bondholder’s bank.
bid: the price buyers offer to pay for bonds; the price at which sellers may dispose of them.
bond: a written promise by the issuer to repay a fixed amount of borrowed money on a specified date and to pay a set annual rate of interest in the meantime, generally at semiannual intervals.
coupon: a coupon bond’s detachable certificate of interest due on a specific date.
coupon bond: a bearer bond carrying coupons for future interest payments; almost all municipal bonds are issued in this form.
coupon rate: the annual rate of interest which the borrower promises to pay the bondholder.
current yield: the percent relation of the annual interest received to the price of the bond.
discount: the difference between the price of a bond and its value at maturity, when the price is lower than the maturity value.
government bond: an IOU of the United States Treasury; considered the safest security in the investment world.
market price: usually the last reported price at which the security actually changed hands.
maturity: the date on which the bond principal or stated value becomes due and payable in full to the bondholder.
new issue: bonds offered to the public for the first time.
note: a short-term bond, generally maturing in ten years or less.
over-the-counter: unlisted securities; those not traded on a major exchange.
par value: the principal amount of a bond; the amount of money due at maturity—usually $1,000 per bond.
point: in bond prices, a point is worth $10 since bond prices are quoted as a percentage of $1,000 maturity value.
premium: the difference between the price of a bond and its value at maturity, when the price is higher than the maturity value.
price: bond prices are generally quoted either in terms of a certain percent of maturity value (981/2, 103) or in terms of yield to maturity.
quotation: the bid and asked prices quoted for a security.
rating: a formal opinion by an outside professional service on the credit reputation of an issuer and the investment quality of its securities; this opinion is expressed in letter values (AAA, BAA-1).
registered bond: a bond may be registered in the name of the owner as to principal or interest or both; a bond registered as to principal can be transferred only with the endorsement of the registered owner, butinterest is paid by presentation of the appropriate coupon; a fully registeredbond provides that interest is paid to the owner by a check from the issuer’s agent; most new corporate bond issues are available only in fully registered form.
secondary market: where existing issues are bought and sold by subsequent owners and purchasers; it may be either over-the-counter or through an exchange.
spread: the difference between what a dealer pays for a security and the price at which he offers to sell it.
yield to maturity: the average annual return on an investment based on the interest rate, price, and the length of time to maturity; it differs from current yield because it takes into consideration the increase to par of a bond bought at a discount and the decrease to par of a bond bought at a premium, as well as the reinvestment of coupon income.
Financial IntegrityAppendixp. X-1