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Financial Institutions and Markets FIN 304. Dr. Andrew L. H. Parkes Day 3 “How do financial markets work?”. 卜安吉. Other Financial Markets. I want to introduce the Commodity Markets briefly here. Just what is traded in these markets and What are some of the indexes.
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Financial Institutions and MarketsFIN 304 Dr. Andrew L. H. Parkes Day 3 “How do financial markets work?” 卜安吉
Other Financial Markets • I want to introduce the Commodity Markets briefly here. • Just what is traded in these markets and • What are some of the indexes. • Also I want you to know the Yield Curve! Financial Institutions & Markets, Day 3
Commodities Futures Mkt Financial Institutions & Markets, Day 3
Commodities Futures cont. Financial Institutions & Markets, Day 3
Commodities Futures cont. http://www.bloomberg.com/markets/commodities/cfutures.html Financial Institutions & Markets, Day 3
Commodities Futures cont. Financial Institutions & Markets, Day 3
Understanding Interest Rates Ch. 3 Ch. 3 – Notice Calculations Discount Bond • Friday’s yield curve => What does this tell you? U. S. Treasury Yield Curve http://www.bloomberg.com/markets/rates/index.html Financial Institutions & Markets, Day 3
Discount Yields pp. 52 - 58 • Yield on a discount basis - Notice the Calculations • Bond Quotes – p. 55 (Wall St J.) • Treasury Bills – p. 57 • Corporate Bonds – p. 58 • Real Interest Rate pp. 58 - 61 Financial Institutions & Markets, Day 3
From Shanghai Daily • China to issue 23.8 bln yuan in treasury bonds at 2.71% • CHINA will issue the 23rd batch of book-entry treasury bonds worth 23.82 billion yuan (US $3.46 billion) for this year starting Monday, according to the Ministry of Finance. • The ministry said in a statement the issue period would last from December 8 to 10. The one-year bonds have a fixed yield of 2.71 percent. Created: 2008-12-6 17:52:42 Financial Institutions & Markets, Day 3
From Shanghai Daily • China to issue 23.8 bln yuan in treasury bonds at 2.71% • Interest will be calculated from December 8, and the principal will be paid on December 8, 2009 along with interest. • The latest issue will bring China's book-entry T-bonds this year to more than 1 trillion yuan. http://www.shanghaidaily.com/article/?id=383515&type=Business Financial Institutions & Markets, Day 3