MyAssignmenthelp.com, the most trusted education assistance portal, has a team of security experts who provide securities assignment help to the students. A fixed income security is an investment that provides fixed periodic payments on a regular basis and the eventual return of principal at maturity.
Five percent fixed-rate government bond can be an ideal example of a fixed income security. You would receive an annual $50 payment from your $1,000 investment. At the time of maturity, you would receive $1,000 back. Generally, these types of assets offer a lower return on investment because they guarantee income.
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Advantages of fixed income security
When you discuss the concepts of fixed income securities, you need to involve the advantages of fixed-income securities in your writing so that it reflects your vast knowledge and research. For fixed-income securities assignment help, here we are going to discuss the prior advantages of fixed-income security in brief. If you want to be more acquainted with the concepts, you can take immediate assistance from fixed income securities assignment help.
- Fixed-income securities are very safe in nature. It offers a low return, but at the same time it involves low risk. The finance and securities experts recommend the investors who are looking to diversify into safe avenues should invest in these securities. Safety with low volatility is the main characteristics of these investments. You can get your security thesis done on this topic which may, however, require expert securities assignment help.
- These coupons offer regular income at very low risk. This is an ideal option for the investors who play at minimum risk such as retiree.
- These products are very liquid. In urgent money situation, the investor can convert these contracts into cash immediately.
In your security research paper you need to discuss these topics elaborately. You can refer to our securities assignment help anytime for this.
Types of fixed income securities
Here is a breakdown of some of the main types of bonds. If you want to acquire more understanding on the subject, our fixed income securities assignment help service is there to assist you.
- Certificates of deposit (CDs): These are issued by bank and have stable rate and term. Since these contracts are not flexible as a regular saving account, so interest rates are high. These bonds protect the investors against the risk as they are federally insured by the FDIC (Federal Deposit Insurance Corporation). There are different types of CDs available. You can choose to sell brokered CDs in the secondary market, but it may result in loss of principle due to fluctuation of interest rate, lack of liquidity and transaction costs. Refer to our securities assignment help under securities service for detailed information.
- Treasury bonds: These are issued by the U.S. government. These contracts are generally considered very safe. These bonds can earn tax advantages but due to low risk they earn low-interest return than other kinds of fixed-income securities. We provide the best security writing of treasury bonds under our proficient securities assignment help.
- Corporate bonds: These are issued by companies with the risk varying by credit rating. These contracts usually earn higher interest than CDs and government-backed bonds. These bonds involve greater price volatility. Our PhD qualified security writers can enrich you more in these corporate bonds through securities assignment help.
- Municipal bonds (munis): These are issued by states. There are two prior categories of municipal bonds: general obligation (backed by taxing power) and revenue bonds (backed revenues from a project). Our expert securities assignment help experts are proficient to write the best security research paper on this topic.
- Agency bonds: Agency bonds are issued by the federally sponsored agencies. According to securities USA, these investments are not backed by U.S. government.
- Zero coupon bonds: These are issued by the federal government or by a municipal government. Unlike other government bonds, these contracts cannot earn any prior interest. You may need to provide security writing on this topic. Our securities assignment help service is developed by the best security writers.
- Importance of fixed income securities: Fixed income securities are considered as an important part of a well-diversified portfolio. It can be an excellent choice for risk-averse investors (such as retiree) seeking a stable source of income payments at predictable intervals. As long as they hold to maturity, fixed income securities guarantee return on investments, with payments known in advance.
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Factors that affect the price of fixed income securities
There are a number of variables to consider when investing in bonds as they may affect the value of the investment. If you want to enrich your knowledge on the influencing factors, take our fixed-income securities assignment help.
- Interest rate risk: The major factor that can affect the price of fixed income securities is interest rate. If there are any movements in interest rates, the market value of the securities will undergo fluctuations. When rates are high, the market prices of existing debt securities fall. Hence, these securities become less attractive to the investors compared to higher coupons’ new issues. When interest rates fall, the market price of existing fixed income securities goes high. Hence, these bonds become more attractive to the investors compared to the newly issued bonds priced at lower rates. To understand the concept, refer to our securities assignment help by the most eminent security writers.
- Price risk: The price received may be more or less than the original purchase price. Generally, it depends on the level of interest rates, time to the term, credit quality of the issuer and liquidity. It has to be remembered that selling a security that has not been matured yet may affect the actual yield received. The prices may also be affected by current conditions of the market or the size of the trade. Our specialized team of securities Australia and securities USA can enrich you with knowledge on price risk through the best securities assignment help.
- Liquidity risk: In liquidity risk, the investor will not be able to sell securities due lack of demands from the potential buyers. As a result, the investor sells them at substantial loss in the sale process.
- Reinvestment risk: Reinvestment risk is the risk where the income and/or principle payments will have to be invested at lower rates. Investors consider reinvestment risk greatly in callable securities. Some bonds may be the call feature that allows the issuer to call or repay prior to maturity. This situation generally occurs when the market rate falls low enough for the issuer to save money by repaying existing higher coupon bonds. Learn about this factor through our popular securities assignment help.
- Prepayment risk: Prepayment risk is considered as the risk that the issuer may repay bonds prior to maturity. Generally homeowners tend to prepay their mortgages at times that are advantageous to their needs. If the bonds are repaid early, the investor counters reinvestment risk at very lower price. You need to discuss this in your security research paper.
- Purchasing power Risk: Fixed income investors put emphasis on the real rate of return. Rising inflation affects the real rates of return. The reason is inflation reduces the purchasing power of the investment income and principle. It is one of the key issues where students require securities assignment help.
- Credit Risk: The safety of the fixed income investor’s principle is decided by the issuer’s credit quality and ability to meet its financial obligations. For example, payment of coupon and repayment of principal at maturity. Either the issuer’s credit rating or the market’s perception of the issuer’s business prospect vitally affects the value of its outstanding securities. For more examples, refer to our securities assignment help.
- Capital Structure: It is important for the investor to know how fixed income securities rank in the capital structure of the issuer. Capital structure is one of the major factors that affect the price of the fixed income securities. It helps to determine the order of repayment priority by the issuer. The investors should prefer the bonds which typically rank below the corporate bonds. The security writing team of MyAssignmenthelp.com can provide you the best securities assignment help on capital structure.
- Default Risk: In default risk, the issuer will not be able to make interest payments and/or return the principal at maturity.
The finance security experts are always there to help you on the concepts of fixed-income securities and security research paper. You can get security writing assistance from fixed-income securities assignment help.
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