How and why did slavery develop in the British colonies?
After enslaved Native American laborers began to die due to exposure to disease, European powers began purchasing enslaved Africans, who became their primary labor source. Britain sent their first slave ships to the British West Indies to work on tobacco plantations and then later sugarcane plantations.
What role did African slavery play in the English colonies of America?
Directly or indirectly, the economies of all 13 British colonies in North America depended on slavery. With plentiful land and slave labor available to grow a lucrative crop, southern planters prospered, and family-based tobacco plantations became the economic and social norm.
How did slavery develop in the American colonies?
However, many consider a significant starting point to slavery in America to be 1619, when the privateer The White Lion brought 20 African slaves ashore in the British colony of Jamestown, Virginia. The crew had seized the Africans from the Portugese slave ship Sao Jao Bautista.
Why did many English came to America as indentured servants?
The idea of indentured servitude was born of a need for cheap labor. With passage to the Colonies expensive for all but the wealthy, the Virginia Company developed the system of indentured servitude to attract workers. Indentured servants became vital to the colonial economy.
What countries did indentured servants come from?
The indentured workers (known derogatively as ‘coolies’) were recruited from India, China and from the Pacific and signed a contract in their own countries to work abroad for a period of 5 years or more.
What is Indenturement?
Indenture refers to a legal and binding agreement, contract, or document between two or more parties. Traditionally, these documents featured indented sides or perforated edges.
Are indentured servants paid?
While slaves existed in the English colonies throughout the 1600s, indentured servitude was the method of choice employed by many planters before the 1680s. Each indentured servant would have their fare across the Atlantic paid in full by their master.
What is a CLO indenture?
A CLO’s governing contract (the indenture) consists of an agreement between the issuer and the trustee. The trustee is a bank whose role is to represent the CLO noteholders.2 The CLO hires the manager subject to a collateral management agreement. The debt issued by the CLO is divided into separate tranches. “
What are bond indentures?
A bond indenture is a legal document that outlines all the parameters of the bond issue, such as the par amount, issuer, coupon rate, security pledge, and the rights of bondholders. When analyzing a bond, it is important to review the credit risk of the issuer – the entity legally obliged to repay the bondholders.
How do callable bonds work?
Callable or redeemable bonds are bonds that can be redeemed or paid off by the issuer prior to the bonds’ maturity date. When an issuer calls its bonds, it pays investors the call price (usually the face value of the bonds) together with accrued interest to date and, at that point, stops making interest payments.
What is yield to maturity of a bond?
Yield to maturity (YTM) is the total return anticipated on a bond if the bond is held until it matures. In other words, it is the internal rate of return (IRR) of an investment in a bond if the investor holds the bond until maturity, with all payments made as scheduled and reinvested at the same rate.
What does a zero coupon bond mean?
A zero-coupon bond is a debt security that does not pay interest but instead trades at a deep discount, rendering a profit at maturity, when the bond is redeemed for its full face value.
What is the benefit of zero coupon bonds?
The advantages are mentioned below: No reinvestment risk: Other coupon bonds don’t allow investors to a bond’s cash flow at the same rate to the investment’s required rate of returns. But the Zero Coupon bonds remove the reinvestment risk.
How do you buy bonds?
You can purchase government bonds like U.S. Treasury bonds through a broker or directly through Treasury Direct. As noted above, treasury bonds are issued in increments of $100. Investors can buy new-issue government bonds through auctions several times per year, by placing a competitive or a non-competitive bid.
What does coupon bond mean?
A coupon bond is a type of bond. The bond issuer borrows capital from the bondholder and makes fixed payments to them at a fixed (or variable) interest rate for a specified period. that includes attached coupons and pays periodic (typically annual or semi-annual) interest payments during its lifetime and its par value.
Can you lose money in a bond?
Bonds can lose money too You can lose money on a bond if you sell it before the maturity date for less than you paid or if the issuer defaults on their payments.
Why is it called a coupon?
History: bearer bonds The origin of the term “coupon” is that bonds were historically issued in the form of bearer certificates. At the date the coupon was due, the owner would detach the coupon and present it for payment (an act called “clipping the coupon”).
Do bonds have to have a positive coupon rate?
To calculate, simply divide the annual coupon payment by the bond’s selling price. Even if the price is substantially above par, a bond that pays any interest at all will always have a positive current yield. For a bond to have a negative current yield, it has to pay negative interest.
Why are real yields negative?
Deeply negative real yields – bond yields after accounting for inflation – are driving gains in all corners of financial markets. The combination of higher price prospects but quiet trading in the bond market therefore forces down real yields.
Why would anyone buy a bond with a negative yield?
Traders would be willing to buy a negative-yielding bond if they thought that the yield might dive deeper into negative territory. Fixed-income prices and yields move inversely, so if a bond yield gets even more negative, the bond price would rally, allowing the trader to make a profit.