Valuation of a Bond with Maturity

Probir Banerjee
Updated on 18-Aug-2021 11:52:34

213 Views

There are basically three types of bonds in the market −Bonds with maturityPurely discount bondsPerpetual bonds.In this article, we will see how the bonds with maturity are valued. Bonds with maturity have a maturity date on which the bond's value with the interest payment is returned to the investor.Note − There are three types of bonds depending on their characteristics, but the bond with a maturity is the most common among them.Bonds with MaturityGovernments usually offer bonds that have a given interest rate and a maturity period. The net present value of a bond is its period of cash flows ... Read More

What is a Perpetual Bond

Probir Banerjee
Updated on 18-Aug-2021 11:51:43

303 Views

A perpetual bond is a never-ending bond. They also don't have a maturity value. these bonds just pay the interests in the form of coupons for an indefinite period. Since the interest is paid for theoretically forever, the bond is named perpetual meaning forever.ConsiderationsA perpetual bond is an obligation. It is an obligation only in name because the issuer doesn't have to pay the lump sum and only interests are paid forever.Sometimes, perpetual bonds are preferred instead of dividend stocks. However, the similarities between the two are extremely limited.Dividend interests are not mandatory to be paid. That is in the ... Read More

Expectation Theory, Liquidity Premium Theory, and Segmented Market Theory

Probir Banerjee
Updated on 18-Aug-2021 11:44:26

3K+ Views

Expectation TheoryThe upward sloping curve or the inverted curve is supported by the Expectation Theory. It states that since investors want the maximum return from their short-term investments, the rate of the short term should increase in the future. Then, we must assume that long-term rates are higher than short-term ones. However, in present value terms, the return from long-term security is equal to the series of short-term securities.Since future values from investments are the same as that of long-term returns, investors will be indifferent in choosing between them. The Expectation Theory assumes that if Capital Markets are efficient, there ... Read More

Features of Preference Shares

Probir Banerjee
Updated on 18-Aug-2021 11:43:11

344 Views

As we know, there are generally two types of shares − general shares and preference shares. They also have certain differences and some similarities. While the preference shares have some distinct characteristics, it is easy to sort the differences between them.The following features are available with preference shareholding.Preference in ClaimsPreference shareholders have the preference in claims on the assets of a company prior to equity shareholders. The equity shareholders are the owners of the company. Therefore, the preference shareholders have an upper hand while making a claim on the company's dividends and assets before the owners who are ready to ... Read More

Difference Between Book Value and Replacement Value

Probir Banerjee
Updated on 18-Aug-2021 11:41:41

2K+ Views

Book ValueIn finance, assets are considered at their historical cost rather than present value. Therefore, the price gets depreciated over the years. Sometimes, book value represents net cost minus the amortized value. The book value of debt is represented at its outstanding amount.The difference between book values of assets and liabilities is always equal to net worth or shareholders' funds. Net worth divided by the number of shares gives the value of book value per share. The book value considers cost rather than value. By value, it means the worth of an asset today in terms of its potential advantages ... Read More

Data Chunks in Node.js

Mayank Agarwal
Updated on 18-Aug-2021 09:52:53

4K+ Views

Data chunks in Node.js or any other language can be defined as a fragment of data that is sent to all the servers by the client. The servers make a stream of these chunks and form a buffer stream. This buffer stream is then converted into meaningful data.Syntaxrequest.on('eventName', [callback] )ParametersThe parameters are described below −eventName − It is the name of the event that will be fired.callback − Callback function to handle any error if it occurs.ExampleCreate a file with the name "index.js" and copy the following code snippet. After creating the file, use the command "node index.js" to run ... Read More

Running Java in Node.js

Mayank Agarwal
Updated on 18-Aug-2021 09:51:28

3K+ Views

Node.js is an event-driven JavaScript runtime platform that is built using the Chrome’s V8 JavaScript engine. Node is mainly used for building large-scale applications. In this article, we will see how to run a Java code in Node.js.StepsCheck if Node.js is already installed on your system using the following command −npm initInstall Java on your local system as npm packagenpm install java Ensure that Java is already installed on your system. If not, you need to install Java on your system before running the following code.Example 1Create a file with the name "runJava.js" and copy the following code snippet. After ... Read More

Giving Input to a Node.js Application

Mayank Agarwal
Updated on 18-Aug-2021 09:44:44

720 Views

The main aim of a Node.js application is to work as a backend technology and serve requests and return response. But we can also pass inputs directly to a Node.js application.We can use readline-sync, a third-party module to accept user inputs in a synchronous manner.Syntaxnpm install readline-syncThis will install the readline-sync module dependency in your local npm project.Example 1Create a file with the name "input.js" and copy the following code snippet. After creating the file, use the command "node input.js" to run this code.//Giving Input to a Node.js application Demo Example // Importing the realine-sync module const readline = ... Read More

Node.js util.debuglog Method

Mayank Agarwal
Updated on 18-Aug-2021 09:42:41

221 Views

The util.debuglog() method creates a function that can be used to write the desired error/debug messages to stderr. These error messages are written only upon the existence of the NODE_DEBUG environment variable.Syntaxutil.debuglog(section, [callback])ParametersThe parameters are described below −section − This parameter takes the portion of the application for which the debug log is being created.callback − This is the callback function which will receive the pointer if any error occurs during the execution of method.Example 1Create a file with the name "debuglog.js" and copy the following code snippet - Live Demo// util.debuglog() demo example // Importing the util module const ... Read More

Node.js Hash Update Method

Mayank Agarwal
Updated on 18-Aug-2021 09:28:14

581 Views

The Hash class is one of the many utility classes that is used for creating the hash digests of data. The hash.update() method updates the hash content with the data passed, and the encoding that is passed along with the parameters. If the encoding is not passed and the data is a string, ‘utf8’ encoding is used.Syntaxhash.update(data, [inputEncoding])ParametersThe parameters are described below −data − This input parameter takes input for the data that will update the hash content.InputEncoding − Encoding to encode the input data or the data stringExample 1Create a file with the name "hashUpdate.js" and copy the following ... Read More

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