Helpful phrases for writing a summary.

Key words and phrases for annotations

The article deals with

The paper focuses on

is devoted to

gives a survey of …

considers

throws light on

outlines

analyses

The author (also) studies … as well.

examines

presents

dwells upon

explains

points out

compares and contrasts

shows

determines

substantiates

stresses

emphasises

proposes

Key words and phrases for annotations(in passive)

The development analyzed

The process studied

The problems examined

The tendencies investigated

The experience traced

The results of is described

The data in smth ( also ) given

The analysis for are shown

The approaches defined

The attempts determined

The present condition compared and

The basic aspects contrasted

The reasons considered

The research under consideration

The main directions presented

The requirements outlined

The specific features explained

The distinctions proposed

The modern state systematized

The objective reflected

The measures

The significance stressed

The importance for emphasized

The role of smth revealed

The nature smth is substantiated

The essence are proved

The necessity in grounded

The influence on

The dependence

3. Questions for reasoning and discussion.

1. As interest rates in the market change over time, the market price of bonds rises and falls. The change in the value of bonds due to changes in interest rates is a risk incurred by bond investors. What is this risk called?

2. In addition to Treasury securities, some agencies of the government issue bonds. List three such agencies, and state what the funds raised by the bond issues are used for.

3. A call provision on a bond allows the issuer to redeem the bond at will. Investors do not like call provisions and so require higher interest on callable bonds. Why do issuers continue to issue callable bonds anyway?

4. What is a sinking fund? Do investors like bonds that contain this feature?

5. What is the document called that lists the terms of a bond?

6. Describe the two ways whereby capital market securities pass from the issuer to the public.

Standardand Poor's	Moody's	Definition
AAA	Aaa	Best quality and highest rating. Capacity to pay interest and repay principal is extremely strong. Smallest degree of investment risk
AA	Aa	High quality. Very strong capacity to pay interest and repay principal and differs from AAA/Aaa in a small degree
A	A	Strong capacity to pay interest and repay principal. Possess many favorable investment attributes and are considered upper-medium-grade obligations. Somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions
BBB	Baa	Medium-grade obligations. Neither highly protected nor poorly secured. Adequate capacity to pay interest and repay principal. May Lack Long-term reliability and protective elements to secure interest and principal payments.
BB	Ba	Moderate ability to pay interest and repay principal. Have speculative elements and future cannot be considered well assured. Adverse business, economic, and financial conditions could lead to inability to meet financial obligations.
B	B	Lack characteristics of desirable investment. Assurance of interest and principal payments over long period of time may be small. Adverse conditions Likely to impair ability to meet financial obligations.
CCC	Caa	Poor standing. Identifiable vulnerability to default and dependent on favorable business, economic, and financial conditions to meet timely payment of interest and repayment of principal.
CC	Ca	Represent obligations that are speculative to a high degree. Issues often default and have other marked shortcomings.
C	C	Lowest-rated class of bonds. Have extremely poor prospects of attaining any real investment standard. May be used to cover a situation where bankruptcy petition has been filed, but debt service payments are continued.
CI		Reserved for income bonds on which no interest is being paid. Payment default.
NR		No public rating has been requested.
(+) or (—)		Ratings from AA to CCC may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.