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Jun 12.12
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Investments
/ by Ro Econ
Here is a quick reference chart to help you determine market price and coupon rate of bond trades.
- When a bond trades at par value:
- Market Price = face value
- Coupon Rate = market interest rate
- When a bond trades at a discount:
- Market Price < face value
- Coupon Rate < market interest rate
- When a bond trades at a premium:
- Market Price > face value
- Coupon Rate > market interest rate
Bond Pricing Principles
- Interest rates and bond prices are inversely related.
- The longer the time a bond matures, the more volatile the market value of bond in response to changes in interest rules.
- Lower coupon bonds are more volatile in price than higher coupon bonds when interest rate changes.
- Lower coupon –> greater % in future = volatility
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Jun 08.12
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Personal Finances
/ by Ro Econ
Zany Zant had just invented a nifty device that measured indifference and disgust. He wanted to test it and to observe if there was correlation between the two emotions. So he asked his best friend Fast Hopper if he would wear it for a day. “No prob” said Fast Hopper.
The temperature the day Fast Hopper had to test out the device was -25C. He had forgotten to turn on the timer for his car’s block heater. “Doh!” said Fast Hopper.
His wife reminded him over breakfast that he had promised to help her with their incomplete 2007 tax returns weeks ago. “Meh,” said Fast Hopper.
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Jun 01.12
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Debt Management
/ by Ro Econ
Taking care of your consumer debt is one of the main elements to help pull your household out of the red, but also the economy itself, back on track. Before making any decisions regarding debt relief options spend your time online researching so you understand the different options. There are many debt relief options like debt settlement, debt consolidation, debt management, bankruptcy and so on. Each of these has their own pros and cons.
Debt relief options and things to consider
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May 23.12
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Macroeconomics
/ by Ro Econ
Originally posted in May 2009.
This is a response to an article from about.com about the cons of import quotas, we decided to suggest a few pros and expand on some more cons. Now don’t get me wrong, the article brings up 3 smart points, but let’s not all hurl insults at import quotas. Here are some more cons and some pros.
Using his analogy of cricket bats (why not something more useful like barley? barley=beer, anyways,) if the government used an import quota they are in fact restricting the supply of bats domestically. That means the local producer benefits from less competition, higher prices for his goods, but the consumer will in turn pay more.
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May 01.12
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Macroeconomics
/ by Ro Econ
*Note: Data compiled from RAND California unless otherwise indicated. Compiled with help from San Diego Bankruptcy Lawyers*
The US Department of Commerce released Quarter 1 2012 GDP data and the American economy saw an expansion of 2.2%. Expectations pegged growth closer to 3% so 2.2% was in fact under estimates indicating a plausible economic slowdown coming into the Spring. Of course, 2.2% is better than negative.
The Canadian economy had some tepid news pouring cold water on Bank of Canada rhetoric on possible interest rate in increases in the upcoming quarter.
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Apr 30.12
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Personal Finances
/ by Ro Econ
Not long ago a bank teller and I got into a conversation about hair. She asked me: What can I do to have nice hair? Mine is falling out and it’s thin. I told her make sure to eat enough protein and vitamins, giving her examples of some foods she could eat. Then she asked me isn’t there some treatment I could do instead? Her question led me down the shampoo aisle at the nearest large store to count how many hair products were available. There were products for frizzy hair, colored hair, long hair, blond hair, products to increase volume, and products for shine. I lost count at 351. Then I reflected on human nature because I have encountered her viewpoint in the past. A close relative has told me that in his old age he’s OK with getting a medical condition as long as medical care can fix it. Healthy lifestyle? Why bother?
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Apr 24.12
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Personal Finances
/ by Ro Econ
Well here we are in the midst of another Canadian Summer. What has transpired in the financial realm that is of relevance? Let’s do a recap of what’s important to your bottom line.
First off I hope that all of you have done your 2011 tax return, especially if you owe money. Remember that the penalties for overdue taxes are an immediate 5% on the unpaid balance and daily interest thereafter. Putting that task in the procrastination pile will not make the problem go away! Most of you know you can ask for my help, moral support or otherwise.
Chugging Along – Alberta Economy
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Apr 05.12
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Energy
/ by Ro Econ
We’ve all read the top 10 lists on how we can conserve our gasoline and drive a few extra stops before our tank runs empty. These stories are particularly popular given the consistent rising price at the pumps. But here’s a question: how many of these ‘gas saving tips’ actually help reduce fuel consumption? With that in mind, here are the…
Top Ways How NOT to Save Money on Fuel
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Apr 02.12
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Uncategorized
/ by Ro Econ
And we don’t blame him…
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Mar 21.12
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Personal Finances
/ by Ro Econ
**Edit: Has anything changed? We originally posted this article in 2007 and wonder if much has changed? One thing has, more people are in the ‘old’ demographic. Are caregivers (boomer parents) learning to deal with the increase?**
I always find it funny, somewhat comical, when banks state the brutally obvious. The latest, according to a survey of 2,195 Canadians between the ages of 45 and 60 conducted for BMO Financial Group by Ipsos Reid, of the one-third (34 per cent) of boomers who currently assist aging relatives:
- 66 per cent say it has had some negative impact on their lives
- 31 per cent say they have less time for themselves
- 20 per cent have had to take time off work
- 19 per cent say that they have been impacted financially.
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