Organisation Behaviour Transactional Leadership

Question: Talk about the Organization Behavior for Transactional Leadership. Answer: Presentation: For any association to be effective there is a necessity of a proficient administration by a pioneer. Authority is potentially one of the most critical parts of the board. It contributes tremendously to the prosperity of the associations. It could never be fruitful in the nonattendance a viable and moving pioneer who can empower them his/her accomplices to progress in the direction of accomplishing the objectives of the association (Hand et al., 2015). A few academicians have laid accentuation on two styles of administration, as the years progressed. One is value-based administration and the other is transformational initiative. Them two have been a well known subject of discussion since quite a while. Value-based administration styles are engaged with the support of the typical progression of procedures. It very well may be delineated as keeping the boat above water. Then again, transformational initiative is proactive and it attempts to modify the way of life of the association by the execution of new thoughts (McCleskey, 2014). With the assistance of a complete report, this exposition will distinguish the best administration style, between the two styles of authority. The idea of transformational administration style was from the start built up by James MacGregor Burns who was an expert of authority and presidential biographer. As indicated by him, transformational administration can be seen when the pioneers alongside the adherents gain themselves to ground to more elevated level of good and eagerness (Deichmann Stam, 2015). The transformational pioneers draw in with their supporters, lays weight on higher request principal necessities, and bring issues to light in regards to the significance of exact outcomes alongside new ways by which the outcomes or results may be accomplished (Lowe Avolio, 2013). The creators Bass and Riggio clarified in their great content Transformational authority that transformational pioneers are the individuals who energize and invigorate their supporters to accomplish the results that are unprecedented in nature and build up their individual limit of administration simultaneously. These sort of pioneers give help to their devotees to develop and create as pioneers by giving a reaction to the requirements of the individual supporters by engaging them and causing them to line up with the objectives and targets of the individual accomplices, the gathering, the pioneer, just as the bigger association (Baloch et al., 2014). Value-based pioneers utilize the disciplinary force alongside a scope of actuations to urge the workforce to give their best execution. The term value-based alludes to the truth that this authority style successfully energizes subordinates by methods for offering impetuses or grants for their general execution (Odumeru Ogbonna, 2013). A pioneer, who has value-based authority style as a rule, doesn't anticipate direct deliberately an association or organization to a place of market administration. These pioneers are only worried about guaranteeing that all the activities stream proficiently. These sorts of pioneers know about the relationship between the endeavor and prize. This initiative style is responsive and its direction manages the current issues. The value-based pioneers depend on standard types of remunerations, motivation, discipline and endorsement to control their supporters. They propel their associates by setting targets and promising impetuses for the necessary executio n. This administration style relies upon the intensity of the pioneer to strengthen the devotees with the goal that they can effectively finish the deal. These kinds of pioneers regularly use specialized information to discover the procedure change. They trade significant motivating forces for their work and dependability of the devotees (Deichmann Stam, 2015). Gauges, systems and rules are fundamental in value-based initiative. The companions re not inspired to be creative or to find new goals to the issues. An investigation has discovered that value-based administration style tend to be generally efficacious in conditions where issues are straightforward and characterized plainly. It tends to be viable in various circumstances and it is viewed as a deficient and may stop the pioneers just as the adherents to accomplish their total potential (Odumeru Ogbonna, 2013). The advantage of value-based initiative style is that it obviously depicts the jobs and convictions of the pioneer just as the supporters. It additionally ensures that the hierarchical culture is kept up and the principles are followed carefully along with the social standards (Zhu et al., 2012). On the other hand, this style of administration implies that failure of conveying the normal yield could prompt the results, for example, nonappearance of extra advantages or rewards, decreases in compensation, or the more regrettable, terminating. This style of initiative is worried about an immediate methodology and the pioneers expect results from their devotees who consecutively convey with the exception of in the event that they would prefer not to endure the outcomes (Hamstra et al., 2014). As per the methodology of value-based administration style, the pioneers are in a place of impact since their aptitudes and information is better in correlation than the remainder of the colleagues. The models of value-based initiative style advance the pioneers in arranging, distributing assignments to the workers and deciding. Explicit defining of objectives, with conceivable gauges for good just as awful introduction, and unequivocal understandings are made as for the duties and desires (Dai et al., 2013). The value-based pioneers consider that the strategy for getting staff for execution is by pronouncing clear motivators and punishments set up. This presumes the adherents will just work for their own personal circumstance, more enthusiastically than from a feeling of direction (Odumeru Ogbonna, 2013). Positive criticism is given all through the arrangement, with the aim that the representatives perceive whether they are playing out the assignments adequately, and when progress is required. This style of initiative is ideal for the associations that are set up from quite a while and have found the procedures that lead to the creation of the ideal results or results. In conditions like this, there is as often as possible a point by point set of pre-concurred destinations that should be practiced, and the test is the finish of these errands all the more capably (Hamstra et al., 2014). Then again, the transformational pioneers feel that consolation through impetus delivers minimal measure of exertion required. For example, for the representatives, their compensation is prize and they will basically make a solid effort to keep up their activity just as pay (Deichmann Stam, 2015). Rather than using grants and punishments as sparks, the endeavor is to help the individuals from the group in understanding and sharing the requirements to get achievement. With a thought of the point in the psyche, the workers will feel persuaded to accomplish it. The undertaking at that point ends up being a campaign instead of a straightforward procedure. In qualification with the value-based view in which the pioneer is a specialist, transformational supporters consider each colleague as a specialist. As opposed to being allocated to get guidelines, the individuals from the group have been chosen because of their subject matter that adds to the general capacity of the group. Ever indivi dual from the group is relied upon to invest in amounts of energy during the time spent creation choices and arranging (Zhu et al., 2012). The pioneers having transformational authority style plans to change and not to keep up the status. Redundancy of the comparable systems prompts the creation of comparative outcomes; consequently, new reasoning ways are expected to meet the better and greater goals (Hamstra et al., 2014). The pioneers having a transformational initiative style urge the devotees to thoroughly consider of the case, so as to locate the innovative methods of working. It can likewise challenge the current culture of the association and present new qualities just as perspectives. This style of authority is generally effective in the associations that are new or in the associations wherein the old techniques have gone stale and can not, at this point competent to deliver results (Lowe Avolio, 2013). The basic highlights of a transformational pioneer, as showed by Dixon in the year 1998, are the key drivers behind effective practices. His examination uncovered that the conduct of a pioneer is affected by four components: genuineness, self-assurance, individual qualities and uprightness (McCleskey, 2014). The essential power of driving behind efficacious execution is engaged with the capacity of the pioneer to get related with his/her encounters with transformational practices. One such affiliation is set up which prompts outer change, bringing about the change of the association. For example, when the pioneers start to accept that their work can make a distinction; their motivations surpass over the individual thought processes and are outfitted towards everyone's benefit (Deichmann Stam, 2015). A higher inspiration is offered by transformational administration style and it likewise improves the nature of presence for the hierarchical individuals. Then again, value-based authority style is viewed as a best systems administration of intensity (Baloch et al., 2014). The pioneers who have a transformational authority style are fit for practicing impact in the two essential zones specifically, sympathy and profound thought, that intrigue to the psyche just as the heart. Using these influences, a transformational pioneer is fit for propelling his/her supporters and follows up for their benefit along with the prerequisites of others. In this administration style, the pioneers comprehend the formative needs of their devotees or partners. As indicated by Jung et al. (2009), the pioneers having a transformational administration style are acceptable tutors or adv

Applications Of Mechatronics In Aviation Engineering Essay

Utilizations Of Mechatronics In Aviation Engineering Essay The term Aviation covers all the exercises included structure of flying airplane particularly planes. The two significant divisions are assembling of air specialty and its segments, and second carriers activity. This assembling incorporates of space specialty, rockets and related electrical and electronic parts. This flying industry partitioned into Air create fabricating General avionics exercises Carrier activity Air terminal activity Avionics bolster businesses Utilizations of Mechatronics in Aviation This article will talk about a portion of the segments utilized in aeronautics industry which identifies with utilizations of mechatronics. Aileron Folds and Actuator drive unit Pilot Static framework Fly by wire control framework Yaw damper Essential flight control framework Interior route framework Under carriage Estimation of engine rpm Estimation of wind stream speed Height estimation sensor Velocity Aileron This ailerons were mounted by the pivots in a response test casings and assortment of actuator designs with customizable connections. Electro dynamic shaker connected with a reinforced cushion to the detachable closeout rib are utilized to apply different frequencies and plentifulness to the aileron. An accelerometer used to screen the recurrence reactions. On the off chance that the frequencies were practically identical the shudder free execution of the composite aileron was anticipated. A couple of actuators fixed by the cushions to the back of the ailerons. This is utilized to stack and decide the chordwise bowing and torsional unbending nature. The development are estimated at nine focuses on the ailerons were estimated by two different ways. The two different ways are straight transducers and optical. Folds This folds built with parametric PC model and actuator framework. The general model could moved the full scope of fold turn and diversions and it could speak to the warm extension in both vertical ways and longitudinal. The drive unit pivots in its mounting hub to keep up intersection of the pinion apparatus and part gear paying little mind to any movements in the area of the fold pivot hub. The current PC configuration model is utilized to decide the genuine development at the holding on for the framework in a thermally redirected and acclimate the necessary development. This PC model is utilized to discover the wellsprings of impedance and dispenses with the source. This framework is solid just as basic for ongoing assurance of parts areas in the vehicle. It is exceptionally hard for legitimate arrangement of the parts with out this PC model and drive unit. Actuator drive unit This actuator drive unit is intended to make most extreme torque and speed if any two electrical or controller disappointments. Due to weight concern mechanical repetition isn't given additionally it will build impact of multifaceted nature and generally speaking unwavering quality. To determine this issue the safeguard configuration were incorporated into the individual segments to improve the dependability concerns. At the point when the engine channel bombs the remainder of the channel would haul along the bombed engine. Pilot Static System This pilot static framework is generally utilized in airplanes to decide the airplanes velocity, Mach number, elevation and height pattern. This framework comprises of pilot tube, a static port and pilot static instruments. This unit additionally quantifies the outside powers following up on the airplane like temperature, weight, thickness and consistency of the liquid while in activity. Rest of the instruments associated with observing PCs and information recorders, height encoders, compartment pressurization controllers and different speed switches. The vast majority of the business airplane fiascos have been followed to a disappointment of the pilot. Fly by Wire control Systems This fly by wire control frameworks is generally solid than manual control of an airplane. The adjustments in flight control parts are changed over to control sign and transmitted to flight control PCs by the wires to decide how to move the actuators at each control surface. This flight control PCs offers criticism to settle the airplane execution even without pilot information. Yaw damper In many air make for the most part in planes and turboprobs to diminish the damper because of Dutch move mode this Yaw damper is utilized. It incorporates Yaw rate sensors and processor. This general unit offers sign to an actuator which is associated with the rudder. The reason for this yaw damper is to give answer for the better ride to travelers. This segment is required in airplane to guarantee the soundness remains with in the ensured qualities. Essential flight control framework This precisely controlled framework configuration is to give reacts to essential flight control framework. For flight envelope security this electronically framework is utilized. This control framework is part into two levels, the four actuator controls and three essential flight PCs. This offers alerts to guide. In interior route framework incorporates movement sensors (accelerometers) and revolution sensors (gyrators). This arrangement is consistently figuring the retribution position, direction, and speed of an airplane and space make. Undercarriage At the point when take off and setting down it permits the airplane to move as a taxi. This structure aggregate with wheels, buoys and landing gear framework. The arrival gear is powerfully turned advance and up during the ground activities until it connects with an uplock snare. This arrival gear entryways having high temperature reusable surface protection warm assurance frameworks tiles combined with their external surface. Portrayal arrangement of engines, batteries and propeller In Mini and Micro air vehicles the portrayal arrangement module has been utilizing. This set up having engines, batteries and propellers, PC, multifunction I/O card, tachometer, current sensor, air speed transducer, thermocouple with conditioner and vital equipment interface. The DC voltage applied to the engine is constrained by LabVIEW based programming. This product ceaselessly gathers the six channels information, computes the building contributions, just as continue refreshing the screen readout and showcases the information likewise spare the information into ASCII spreadsheet document. The gathered and showed information incorporates engine current, voltage, temperature, RPM, air speed, push, determined immediate force and determined torque. Estimation of engine RPM It is imperative to gauge most proficiently engine, propeller and rigging box mix RPM. Motor㠢â‚ ¬Ã¢â€ž ¢s rpm dependent on shifting the blends of the impetus system㠢â‚ ¬Ã¢â€ž ¢s segments. Another significant activity is to distinguish when engine disappointment occur. For this location this framework applies two techniques to structure Tachometer. In first strategy a wiring outfit to interface with the current ongoing framework, magnets and Hall impact sensor on the apparatuses or engine fan. At the point when the fan start to pivots, the Hall impact sensor recognizes the field attraction which is created because of turn and imparts a sign to the board that is having ability to check the beats. In second strategy an optics module is engaged to light up the spinner from the side. At the point when light reflects off a white stripe on the spinner is distinguished by the photograph sensor for every insurgency. Estimation of wind current speed By utilizing the warm anemometry the air speed transducer estimates speeds. This technique for estimations offers adaptability with wide ranges for precise estimations. The basic activity of this course of action is an electric flow went through in a fine fiber which is available to the components to cross stream. At the point when the wind current fluctuates the moving warmth additionally changes and it causes a variety in the warmth equalization of the fiber. The fine fiber material having a property to hold the temperature co-productive obstruction. This change is checked by means of electronic techniques and convey the sign to comparing stream speed or stream temperature. This strategy likewise utilized for prompt speeds and temperature estimation. Airplane height estimation sensor For height estimation Piezoresistive silicon sensors are for the most part utilized. Because of high exactness prerequisite the solid silicon pressure sensors are utilized and it conveys significant level simple yield signal is relative to the applied weight. If there should be an occurrence of progress in temperature the silicon sensors are repaid due to these are temperature subordinate. This altimeter is utilized as an outright sensor. The result of the sensor is coordinated to an operational speaker. The increase and balance of the speaker circuit is altering by two trimmers, with the goal that it very well may be adjusted. Velocity This differential velocity pressure sensor yield is associated with an operational speaker. To align the sign addition one of the trimmer is utilized. The ports of silicon based sensors are static and variable. To decide the outside pneumatic stress Mensor pressure controller was utilized to apply an independent strain to the static port. At the point when increment in the weight contrast between two ports it creates the yield voltage. The yield voltage are most reduced when the weight is equivalent additionally it balance the voltage.

Retail Purchasing and Supply Chain ( about Zara ) read the case study Essay

Retail Purchasing and Supply Chain ( about Zara ) read the contextual analysis and answer the inquiries 1 and 2 - Essay Example The purchasing choice procedure at Zara produces wears for the worldwide customer advertise; along these lines, the need to comprehend the purchasing procedure towards the design offers turns into a need so as to guarantee that all projects focus on the requirements of the buyer (Evans, et al 2004, p. 23). The article of clothing store builds up that the developing patterns in the buyer advertise represent the sentiment of hardship as the female sex tries to coordinate with the predominant patterns in the market. For instance, the organization perceives that the purchasers understand that there is have to get to the most current design on observing other persuasive characters wear the thing. Much of the time, Zara portrays the shopper needs through style promotions in the TV media and examines that there could be relative buyer needs in the worldwide market (Pahl and Mohring, 2008, p. 40). In this manner, Zara sets up shopper need acknowledgment as the principal approach the purchase rs take towards the company’s programs. Zara comprehends that purchasers look for the correct data concrning the developing design patterns. The organization sets up that various wellsprings of data may serve to go amiss or improve purchaser information and seeing; along these lines, the best activity that the organization sets up should concentrate on benefiting viable data (Evans, et al., 2004, p. 30). Zara makes an enlightening stream that influences productivity in arriving at the clients at the opportune time. The organization relies upon on the web and TV ads to transfer data to the buyers at a crucial time, when the customer looks for the accessible designs as promoted in the network shows. In light of the developing customer uneasiness to get to data, Zara structures significant designs and disseminates them all through the chain stores while guaranteeing powerful commercial of the offer. This viewpoint subdues purchaser devotion; therefore, with the rise of new style inclines, the design customer fragments will in general hunt data on Zara’s line of offer (Toru, 2007, p. 12). The garments organization examines and actualizes that the style business doesn't destroy the issue of assessment of options as purchasers look to get to the best proposals out of the developing patterns (Rosenbloom, 2009, p. 70). Data linkages are transforming the world into a worldwide commercial center, and along these lines the purchaser accesses a viable basis of surveying the worth relational word of a pattern over another. Zara builds up the angle that the worldwide shopper may change its items with those of the H&M and other close contenders. Be that as it may, this neglects to yield important weight over the organization dependent on the conveyance standards (Evans, et al., 2004, p. 34). In spite of the fact that this is certainly not a dependant perspective in promoting, Zara improves it through guaranteeing quality and dynamic development, which contr ols all view of the worldwide shopper to accept that Zara offers the ideal items properly and to the foreseen status. Buyers appear to set up changed purchasing choices with impact to their unmistakable observations towards items. The style showcase delineates combination in the purchasing choices as exceeding the distinctions. For instance, the Zara organization outlets will in general offer normalized items in the various nations they work

4 Ways to Hack Your Resume So You Dont Even Need a Cover Letter

4 Ways to Hack Your Resume So You Dont Even Need a Cover Letter You’ve composed an eminent introductory letter that clarifies in detail what you could just portray in your resume, and which paints you in the best light with the entirety of the suitable setting. Inconvenience is, the scout you sent it to is too occupied to even think about bothering opening the connection. She skims your resume, and that’s about it. In the event that this is your most noticeably awful bad dream, don’t stress! Try to compose an incredible resume that helps recount to your story. To begin, follow the best resume practice for 2016.In expansion, here are four different ways you can sex up your resume to cause it to do most if not the entirety of crafted by your spread letter.1. In SummaryRight at the highest point of your resume, include a passage that embodies your lift pitch. Let them know and keep it quick and painless what your identity is, the reason you’re not quite the same as different candidates, and what makes you so unique for th at specific position. Scrap the customary â€Å"Objective† section. You won’t need it.2. Get PersonalAdd a tad bit of that individual energy from your introductory letter at the finish of your resume. Give them a feeling of what sort of individual you are, your obsessions, idiosyncrasies, and unique abilities. You can even utilize this space to clarify you’d be willing and anxious to move, or give insights regarding your specific stage in life visvis that activity in that organization. On the off chance that they don’t want to understand it, they don’t need to. Be that as it may, it can truly set you apart.3. Show ResultsDon’t simply list the incredible things you did in the portrayals of your previous occupations, show them. Give solid numbers and demonstrate precisely how powerful you were in that past undertaking or position. This is actually the sort of ammo employing directors love to need to battle to recruit a fantasy candidate.4. Be SocialWhether you like it or not, recruiting supervisors are going to sneak around into your internet based life accounts. Show them you’ve got nothing to cover up and make it simple for them. The straightforwardness and eagerness to make their lives simpler won't be lost on them.Do these four things and it won’t matter in the event that you ever compose another introductory letter again. You’ll have the option to demonstrate in only one report that you’re the correct sort of ability and character for their organization culture. What's more, in the event that you don’t, you’ll spare a ton of sat around idly and vitality.

The Hazards of taking childeren out to eat Essay

The Hazards of taking childeren out to eat - Essay Example McDonalds, for instance, has a comedian as its mascot, Ronald McDonald. It has play areas for youngsters and extraordinary toys that accompany its food. Given a decision, youngsters will uproar to go to these exceptional spots. The food they will eat there, tragically, won't be beneficial for them. These cafés realize that on the off chance that they can bait kids into their eateries they will get cash from the guardians. Pandering to youngsters is a decent plan of action for some eateries. Moreover, note that kids like sugar and shoddy nourishment. These cafés guarantee that they have these things on their menus. This food isn't useful for kids. Guardians who don't take their kids out to eat have considerably more authority over their childrens counts calories. They can prepare with new food and will know precisely what is in every dinner. They can maintain a strategic distance from sweet and fat nourishments and ensure that their kids are eating appropriately. Food pressed with nutrients and supplements outstandingly helped support mental execution as youths got more seasoned, the Journal of Epidemiology and Community Health reports. Scientists said babies diets could change IQ levels later in youth, regardless of whether dietary patterns improve with age. This recommends any psychological/conduct impacts identifying with dietary patterns in youth may well continue into later adolescence, in spite of any ensuing changes to dietary admission, the creators composed (Guardian). The outcome has been arranged. Many drive-through joints have exceptionally low guidelines with regards to food, but their food is inconceivably alluring to youngsters. We need to recollect exactly how risky this sort of food is to childrens wellbeing. As one report as of late put it: â€Å"One out of three kids will contract diabetes. One out of five youngsters presently has hypertension. Specialists are considering kids to be youthful as 2 and 3 years of age with the beginnings of heart disease† (Ringle). Nothing is more

Updates and Reminders for Transfer and First Year Students - UGA Undergraduate Admissions

Updates and Reminders for Transfer and First Year Students - UGA Undergraduate Admissions Updates and Reminders for Transfer and First Year Students The majority of Fall transfer decisions have been made. We should be able to complete the handful of remaining decisions by mid-June. If you have been admitted for Fall and completed coursework this past Spring, please be sure to send us an updated transcript so we can post your credit. Spring transcripts should be processed before your scheduled Orientation date as long as you get your transcript to us in time. We encourage students to bring an updated transcript or grade report to Orientation to ensure access to your coursework during the advising appointment. All admitted students should check the myStatus to make sure you have cleared your Verification of Lawful Presence registration flag. If you do not clear your VLP flag prior to attending Orientation, you will not be able to register for classes after meeting with your advisor. You can find a list of ways to clear this flag on your status check. Please note it can take up to a week to clear you once we have received your information. Admitted First Year students, please do not forget to submit your final high school transcript! If you completed college coursework through dual enrollment then we will need an official college transcript as well. Dont forget to register for Orientation if you have not done so. You can also visit the Orientation website for a To-Dolist of everything that should be completed before your session. Go Dawgs!

Bond Markets Essay Example Pdf - Free Essay Example

Bond markets are one of the important sources of financing an enterprise, corporate and a business entity. Bond market is also called as debt,  credit, or  fixed income market. Bond market is a financial market with different participants buying and selling debt securities which are in the form of bonds. The size of the worldwide bond market is estimated at $82.2 trillion as of 2009 and the size of the outstanding U.S. bond market debt was $31.2 trillion according to BIS. Majority of the bond markets in the U.S. take place between  brokers and dealers along with the large institutions in a decentralized, over the counter market. However, only a small number of bonds and primarily corporate are listed on exchanges. In this study I am going to discuss about the bond markets and their importance to both developed and developing countries in building strong economy and what are conditions that are required for the development of strong bond markets. The study is equally discussed with the developing countries like India which has a very weak bond market and the countries like Hong Kong and United Kingdom which has a developed bond markets. We will also consider the feasibility and suitability of Bond markets being developed in India and what considerations need to be made. We will also take other factors in to consideration e.g. how the development of Bond Markets will help in financing a firm and how corporate governance can maintain effective regulation of the bond markets and keep an economy growing and stimulated. One of the important aspects of this research work is to find out the conditions that are essential for the development of bond markets and the factors that influence these conditions. Different research papers relating to bond markets are studied in order to find out the different conditions that are mentioned in their research papers. Data relating to different countries are collected, tabulated and presented in the forms of graphs in order to make the analysis part more easy and accuracy. Most of the bond markets refer government bond market due to its size, lack of credit risk, liquidity and sensitivity to interest rates. Interest rates are one of the important determinants of bond market since it is inversely related to the bond markets. Bonds A bond is a debt instrument that is issued for a specific period for the purpose of generating capital by borrowing. Different corporations, states and governments issues bonds along with the promise to repay the principal with the coupons on maturity date. Bond markets play the role of bridge between the issuers and investors. Classification of Bond Markets On the basis of the nature of market, nature of issuer and the issuance, bond market can be categorized into different classes. Primary and Secondary Bond Markets It is the market place where the new securities are placed for the first time by the issuer and the buyer directly purchases it from the issuance party. Up to 1970s, bonds were issued and investors hold them until they mature. Investors enjoyed the risk free returns because of the expected nature of free cash flows connected with bonds made them more striking. In late 1970s a new type of market came into being called secondary market. Investors got the chance to take advantage of difference in prices. It is also known as resale market where bonds that already issued by different companies exchanged among the investors and the issuance companies are not involved in it. Government Bond Markets According to many studies, governments are the largest issuer of bonds worldwide. Government bonds, also known as sovereign debts, play an important role in enhancing the liquidity of a bond market. These are the backbones of healthy domestic debt markets. Bond Market Instruments A large range of bonds are available in the open markets. Some types of bonds neither openly traded nor privately placed that are issued according to the terms of buyer. Some most popular bond markets are: Straight bonds Such types of bonds are also called debentures having the fixed income with specific interest payments on specific dates over specific period of time. The issuer is bound to pay predefined interest on bond at regular intervals and cash back the bond at its face value at its maturity time. Perpetual bonds The bonds having no maturity date and on which interest is paid forever are known as perpetual bonds. These bonds cannot be redeemed. Callable bonds Big and municipal corporations issues such kind of bonds and has the right to call back or buy back a part or all under specific conditions before maturity date. The main purpose of call is decline in interest rate. Zero-coupon bonds A bond having zero coupons but sell at lower price than the face value. Strips These securities have no coupon, sell on discount price and mature at face value. Floating rate notes These are bonds having variable coupons and interest is paid after 3 months, 6 months or annually by calculating it with market reference like LIBOR. Convertible bonds These are the bonds that can be changed into other securities like companys common stock. Junk bonds Hence the risk of default is more than compensated by high yields. These are also known as risky bonds because the interest rate on such bonds is very high and are used for speculative purpose. Catastrophe bonds These are insurance linked bonds having the purpose of generating money in any disaster like earthquake etc. These are not directly related to stock market and issuer have right not to pay interest and some time the principal amount as well. Some main concepts necessary for the study Literature Review Herring R,J. and Chatusripitak,N (Jan 2008) had made a study on bond markets and why there are underdeveloped when they are compared with bank and equity sector, they also investigated why there is an absence of a bond market in some countries. They also mentioned some appropriate policies for bond markets considering Thailand research example. At the beginning of there work a brief explanation about characteristics of financial intermediary was discussed as they form markets place for surplus agents deficit agents along with the reduced information cost transaction cost, reduced risk and the participants involved. They also made an empirical study on funds flow analysis and created a matrix between households, private sector firms, government, international sector for analysis and the results obtained from that shows the importance of multiple investments options for people and firm holding real asset. As per their study households have direct financial claim, and increased savi ngs by households as investments in real assets turns more productive and making economy stronger and better. The second and most important aspects of their study is regarding the importance of bond markets for an emerging markets to form an efficient and effective financial markets. The authors have described that there are different policy implications for different participants (equity market, banking industry, savers, and investors) in an economy. Absence of bond market will hinder the economy completely, as there is 1) High cost involved in banking debt financing 2) Since, it is not market determined interest rates, inefficiency in derivatives market 3) Investors or savers have no alternate options or access for better returns 4) Too much dependency on banking alone can make economy vulnerable to crisis 5) some firms issue bonds in international markets(in denominations of Dollars or Euros in order to finance domestic investments by which firms are exposed to hig her foreign exchange risk and they cannot hedge due to absence of effective and efficient bond market. The authors also suggested few measures to improve bond market which highlights about corporate governance 1) Issuing government bond-as it can be used as benchmark for other domestic bonds 2) Improve and frame judiciary and legal rights, so that it is Fair-play and efficient to encourage small and medium investors. 3) Overall financial infrastructure must be developed for emerging countries. And the entire statements and actions suggested and reviewed were well support by empirical analysis on Thailand (emerging market) as evidence for the need and development of bond market. Mihaljek,D , Scatigna,M and Villar,A(2002) in their study on trends in the bond market in emerging countries and their study aimed in analysing size and growth of debt market in relations with their development due to macroeconomic aspects and also including the important microeconomic factors and institutional characteristics which leads to development of bond markets. This literature is well support with our main context of relating the 3 roles as mentioned earlier. And from their work, Financing Firms it is found that bond markets has grown double in size(especially Asia) from mid 1990s to early 2000 which is a clear proof of increase in the size which represents the demand for bond markets very much in action for financing the firms. From empirical analysis it can be noted they found that emerging markets are really growing rapidly, however smaller in size when compared with industrial countries in both domestic and international as well as private and public sector. Adding to the above, bond issuance activity can also be compared; it shows massive increase in percentage of emerging countries however their volume of contribution is still less when compared with industrial countries. These bond markets have always acted, as catalyst innovation and introduction of new financial services. Implementation of corporate governance these things in-turn lead to implementation of rules and regulations, corporate governance over fair play. Evidence of United States is included as importance on formation of laws and constitutions for overall development bond market overall financial market of economy and showed positive results. Corporate governance becomes very important, as these bonds are very complicate with their features, well framed legal judiciary systems is significant to mechanise payments and settlements procedure, maintain fair-trade policy, lay principles for effective and efficient functioning, international trade procedures and so on. A sound secondary market is essential for bond market to work efficiently and effectively, the authors have mentioned measures like proper legal and judiciary system, intervention of central bank, develop fund management industry ,develop efficient clearing and central depository system , all these aspects wi ll automatically develop secondary market which is the most difficult part of bond market in emerging countries as there is proper trade policies the bond prices do not signal exact information to investors and market participants about the bond prices. Hawkins,J(2001) states in his work paper that, financial system in most emerging economies is based on banks and these banks are influenced by the development of bond market. John Hawkins raises questions about whether the bond markets are taking the business away from the banks. On the other hand he also feels that firms are helping banks by issuing corporate bond to central banks. Banks also play a vital role in developing a private sector bond market as they are also involved as issuers, holders, dealers, advisers, underwriters, guarantors, trustees, custodians and registrars in this market. In fact banks are obtaining more profits by performing the above mentioned activities and less from lending. For this reason, it is import ant to have healthy banks to have a sound bond market. And a bond market can improve banking activities. John Hawkins also addresses some of the questions in his work paper which are as follows: Do bond markets substitute for bank lending? For answering this question he uses the explanation given by Greenspan (2000). He says that bond markets can act like a spare tyre, it can substitute bank lending for corporate during the times when banks balance sheets are weak and banks are rationing credit. This was the case in the early 1990s in the United States, and there were some signs of it in Hong Kong in the late 1990s, but John Hawkins finally concludes that bond markets cannot replace the entire banking sectors as it affects the economy of the country. Do bond markets take good lending business away from banks? He says that highly rated companies issue more bonds than the lower-rated companies. In general people prefer to buy the bonds of only blue chip companies which are rated very high and they do not believe in the low rated companies .in fact it is low rated companies requires funds than the high rated companies which has many ways to obtain funds. Finally he concluded that bond markets do not affect banks in turn it develops economy of the country by supporting the banking activities whenever the banks are in crises. Turner, P(2002) writes in his work paper, bond markets in emerging economics: an overview of policy issues that bond markets are developing because of their benefits to the central banks. In general the government bond market helps to fund budget deficits in a non-inflationary way and thereby protects the effectiveness of monetary policy. They also act as an agent for the government in various aspects of the management of government debt. They oversee clearance and settlement systems, and they are responsible for the stability of the financial system. MR. Philip mainly explains about the corporate bond market and the ro le of banks in his work paper. He says that apart from the few Asian countries, there is no much more development of corporate bonds in emerging markets. In his own view Korea has a well developed bond market in the Asian region. According to him banks need to be fully involved in bond underwriting and in the sale of capital market products to households. Another concern about the increased bond issuance may just take profitable business away from the banks. He concludes that bond markets are going to support the banks in difficult times and also helps in the development of the economy of the country. Patil.R.H(2008) in his work paper Broad basing and Deepening the Bond Market in India states that India has a well-knit structure of national and state level development which is regulated by the Reserve Bank of India and Government of India supports and regulates the infrastructure which manages all aspects of governance . The main objective of all the structure and the regul atory measures is to provide much needed long-term finance to the industry which the older existing commercial banks were not keen to provide due to the fear of asset-liability mismatch (R.H Patil) which has negative implications on financing a firms investment. Since deposits with the banks were mainly short/medium term, extending term loans was considered by the banks to be relatively risky (R.H Patil). The interest rates charged by the commercial banks were appropriately aligned in such a way that the project loans were relatively lower than the actual loans (R.H Patil) extended by banks for such purposes as working capital for industrial and other units. Similarly, the rates that the corporate entities could offer on their bonds were fixed By the Finance Ministry which used to regulate the capital markets until the independent capital market regulator Securities Exchange Board of India (SEBI) was set up almost a decade ago (R.H Patil). The Finance Ministry, however, use d to informally consult RBI before it fixed the interest rates on corporate bonds suggesting regulatory influence. Financial sector policies were revamped and deregulation was introduced after 1991 and DFIs no longer had the comfort of the protective policy climate in which they operated. They no longer have access to concessional sources of finance like government guaranteed bonds or budgetary support (R.H Patil) and they now they have competition from commercial banks which keeps competition high and lending rates low helping keep an economy stimulated. Batten,J(2000) in his work paper Expanding Long-Term Financing through Bond Market Development: A Post Crisis Policy Task states that, The Asian financial crisis suggests many policy tasks not only to its worst hit Economies but also to other developing countries (Jonathan Batten) and highlighting some governance issues. One of these tasks is the need to diversify the source of long-term industrial financing for firm, which hist orically is concentrated in the form of short-term bank borrowing and the potential for maturity transformation. This form of financing behaviour historically has entailed currency mismatches, financial inflexibility and vulnerability to external shocks (Jonathan Batten) which highlights some further governance issues. While there is a large ongoing requirement for infrastructure investment in the post-crisis period, there is evidence of a rebalancing of the asset portfolios of financial Intermediaries away from Asia. Specifically, international bank financing peaked in 1996 at US$248 billion and was reduced to US$161 billion by June 1999 which shows how well managed and regulated the worlds strongest economy was. In this post-crisis environment the challenge is to direct the high levels of regional savings to meet this refinancing need. We argue that the appropriate mechanism to redirect these savings is through the development of viable domestic and international bond market s (Jonathan Batten). The financial systems of crisis economies display different characteristics and respond differently to the reduced liquidity that arose following the crisis e.g. in the Republic of Korea which has the largest domestic bond market, and Malaysia has the largest market for bank loans and equities. All crisis economies increased levels of international bonds post-crisis though Korea was the most successful, increasing outstanding from US$23.4 billion in 1996 to US48.5 billion in 1999. This suggests that there is a degree of substitutability between international bank borrowing and international bond issues, though the degree of substitutability varies between different classes of issuers. For example Korea was able to replace the reduced levels of bank lending with international bond issues, though the other crisis economies were not able to do so. This highlights the need to develop more viable domestic bond markets as well as improving the access to internation al bond markets. Background of Indian bond market A capital market is said to be well-developed only if it has a proper composition of both the equity market and the bond market. Risks involved in the banking systems and the limited public finances have created a huge scope for bond markets in India. Both macroeconomic and microeconomic levels can be developed by the corporate bond markets and hence the development of these corporate bond markets will develop the Indian economy. Traditionally developing country banks use Plain vanilla bank lending to raise corporate debt. Even though India has a developed regulatory framework and a financial system, the bond markets in India comprises of only 0.4% of GDP when it is compared to Korea which has 21.1% of GDP. The Indian Bond Market is the third largest bond market in Asia after Japan and South Korea. The government continue to be the largest borrower in India when compared to South Korea which has a private sector as main borrower. There is a satisfactory level of savings in the I ndian Economy at around 23% and according to the RBI (Reserve Bank of India) an average of 78% of the financial savings of household sector were invested in fixed income assets. The debt instruments have supported Indian market for very long period and the most popular financial services are Bank Deposits, insurance, provident funds, income orientated mutual funds and postal saving schemes. Even after having the successful debt instruments the Bond markets in India is not strong may be because of the absence secondary market for debt instruments. Liquidity of Bonds is one of the major issues leading to a classic chicken and egg problem. Aims and objectives The aims of the study are: To assess the conditions those are required for the development of bond market. To measure the performance of the Indian bond market and compare it with developed bond markets. Objectives: Objectives are the building blocks for achieving aims. The objectives of the study are: To study the financial market participants in India and their role in developing the bond market. To compare the development of stock market and its impact on the bond market. To assess the government role in controlling bond markets, since majority of the bonds are issued by government in India. To measure the performance of other developed countries in order to ascertain the growth of Indian bond market. Methodology In this research work a lot of information relating to the interest rates, GDP, inflation rates of different countries are collected and analysed by using graphs to measure the performance of bond markets. Bond measuring techniques like bond curve is also used to calculate the return on which an investor will receive by holding a bond to maturity. Limitations Majority of the data collected is from the secondary sources. Research work is based mainly on qualitative than of quantitative. Bond measuring techniques are limitedly used. No quantitative tests are conducted for measuring performance of bond markets. Empirical study and discussion From the above table, we see that when the volume of transaction in Indian stock market is reaching higher peak every day. On contrary the bond market was sliding down in volume of transaction from 19911.57 crore (10m Indian Rupees) in August 2003 to a mere Rs 605.23 crore in July 2006 and corporate bond market is just 3% of sliding volume. The major obstacle for active bond market is policy structure of the debt market. This was a feature of all the emerging countries that debt market developed slowly than stock market in overall capital formation of the country. It is evident that US has 50% of worlds total bond market , followed by Japan having 15% and UK has long standing bond markets which concentrates more of bond market activities are very alien to these emerging countries. To note, South Korea is the only emerging economy with a reasonably well developed bond market Figures are turnover on the wholesale debt market segment of NSE. Source: NSE Figures are bond issua nces with one year or more maturity in the primary market in the first quarter of 2006-07. Source: Prime Database However from the other research papers and articles, it states that limitations and systemic risk awareness of the bank lending in emerging countries have led to development of bond market. Evidence from the issuance activities of bond in India which has doubled itself in recent past. These bond markets have helped India in various long term economic development activities both at micro and macro economic levels. Though bond markets are in existence from 1947, it was only from last 30 years state owned enterprises started to issue PSU bonds for financing or as instrument to raise funds for investment purpose. However due to lack of liquid and undeveloped secondary bond markets these bonds and bond investments have been unpopular among large population. Brief overview of growth of bond markets The Growth of the Government Bond Market in Emerging Markets Source: International Organization of Securities Commissions May 2002 Corporate Bond Markets Corporate bonds are issued by both private and public entities in order to release funding to benefit their business. Corporate Bonds are most popular amongst investors as they have attractive yields, greater guarantees on return and risks which increases their marketability and dependability. Corporate Bonds also have the added advantage they are being offered by dependable and reputable institutions. Investors in this market include individuals, financial institutions, different types of funds as well as Insurance Companies and Banks. Corporate Bonds are the perfect source of finance to fund long term aspirations of a business. This offers the borrowers flexible and relatively cheap lending to benefit the company in the long term. Corporate bonds are issued from surplus agents to deficit agents via Investment Banks who place suitable lenders and borrowers together after taking the necessary precautions and analysis. Figure 2 shows how and what rate corporate bonds are issue d in emerging Markets. Growth of the Corporate Bond market in Emerging markets Source: International Organization of Securities Commissions, May 2002 There still appears to be a unified mechanism even though Bond Markets are very mature. There are three different types of Bond which are named according to their issuance namely Domestic, Foreign and Eurobond markets Foreign Bond Markets In this case foreign borrowers approach a domestic market in the related currency and the bonds have different names which show which market they were issued to. Bonds issued in US dollars by a borrower located outside US are usually known as Yankee bonds, bonds issued in ponds sterling by a non UK lender are referred to as Bulldog bonds and similarly, bonds issued in Japanese yen by a non Japanese issuer are referred to as Samurai bonds. Eurobond Markets These bonds are issued by a consortium of reputable financial institutions and are not related to the currency of issue are known as Eurobonds. Eurobonds relate back to the 1960s when Eurodollar Bonds (USD Bonds issued by non American entities). The first Eurobonds were issued around 1957 and they are currently being denominated in to almost all currencies. This suggests that they have become more sophisticated over time. Table 2 shows how Eurobond markets have evolved over time and their presence globally, these Bonds are popular as they help meet capital requirements and they also operate outside most levels of governance and are exempt from taxes etc. So, Eurobonds are Bearer Bonds, the bearer has complete rights over the bond and this allows financial institutions to take advantage of lower borrowing costs which undercut those bonds available in domestic markets. Table 1: History of Foreign Bond Market (1990-2001: Nominal Value Outstanding in Billions of US Dollars) Country 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 United States 486.8 495.4 422.4 420 394.9 347.7 291.9 242.3 230.1 147.2 130.4 115.4 Japan 61 72.6 82.1 87.8 93.1 106 89.5 81.2 66.2 52.1 49.5 43.2 Euroland 0            Germany    0 0 0 0 0 0 0 0 0 Italy    n/a 5 3.3 1.8 1.4 1.2 1.8 2.8 2.6 France    5.7 4.8 6.5 6 6.2 4.9 5.7 6 5.5 United Kingdom 145.1 122.3 90.2 65.5 31.6 16.8 10.8 9.4 7.3 3.5 1.3 0.8 Canada 0.4 0.4 0.3 0.3 0.3 0.4 0.4 0.6 0.6 0.6 0.8 0.8 Netherlands   n/a 1.3 3 3.8 4.3 4.5 6.7 8.4 9.9 Belgium    45.5 32.6 36.1 35.1 27.1 21.8 20.4 19.4 17.1 Spain    20.3 19.6 15.4 12.4 10.5 9.4 8.7 8.6 5.6 Sweden 3.9 4.2 4.4 4.9 5.9 6.7 5.6 n/a n/a n/a n/a n/a Australia 9.9 6.6 5.6 2.3 1.7 1.8 1.4 1.7 1.5 1.5 n/a n/a Austria    2 1.8 1.8 2.6 2.4 2.5 2.4 1.9 1.4 Switzerland 110.4 113.4 107 112.5 95.7 95.5 103.1 85.9 76.3 74.7 82 82.1 Finland    0 0 0 0.1 0.2 0.3 0.6 0.9 0.4 Norway 0.5 0.2 0.3 0.4 0.4 0.5 0.9 0.8 0.3 0.4 0.6 0.4 Total 817.5 815.1 712.3 767.2 688.7 641.5 565.4 474 426.9 326.3 312.6 285.2 Note: In Euroland, foreign bonds are included in the Eurobond totals. A breakdown of these bond types is not made available. It is assumed that the majority of these bonds were issued in the traditional Eurobond format. Source: Merrill Lynch, Size and Structure of the World Bond Market 2002-April 2002. Table 2: History of the Eurobond Market (1990-2001: Nominal Value Outstanding in Billions of US Dollars) Country 2001 2000 1999 1998 1997 1996 1995 1994 1993 1992 1991 1990 United States 2840.4 2380.3 1976.6 1438.5 1216.2 932.6 679.5 617.5 576.9 570 548.2 524.7 Euroland 649.8 674.5 594.9 849.7         Japan 450.9 508.1 415.2 381.1 358.6 368.1 362.7 303.8 197.6 149.9 143.8 116.1 Germany     329 305.6 280.6 220.3 176.2 148 129.3 113.4 Italy     107.6 90.7 63.4 52.8 35.1 23.9 23.9 14 France     171.8 165.7 146.4 129.6 91.2 63.2 44.4 27.4 United Kingdom 490 455.7 342.6 326.5 263.8 222.4 173.4 156.4 138.5 114.8 129.4 110.9 Canada 47.1 51.8 56.4 52.2 66 75.2 82.2 80.9 79 61.8 60.4 46.6 Netherlands    88.5 87.1 72.4 59 39.8 21.8 16.9 15.2 Belgium     5.8 5 2.8 0.7 0.4 0.4 0.4 0.4 Spain     6 7.4 6.1 3.3 3.7 1.3 0.8 0.4 Sweden 3.8 4.8 4.6 5.1 4.3 5.1 5.1 4.6 3.3 3.1 3.2 2 Denmark 8.9 9.5 11.5 12.2 11 8.3 5.7 2.8 2.8 3.3 4.2 5 Australia 29.4 30.3 38.7 32.6 39 46.5 38.5 31.9 22.8 19.4 23.2 25.2 Austria     2.7 3.2 4.2 4.1 4 4.6 5.1 4.1 Switzerland 19.5 29.4 25.1 21.3 13.3 11 9.8 5.7 3.6 1.6 2 2 Finland     2.5 2.8 2 1.7 1.4 1.9 2.3 1.9 Norway 4.6 3.8 3.3 1.6 1 0.8 0.2 0.1 0.1 0.3 0.5 0.5 Portugal     11.1 8.7 5.4 2.3 1.6 n/a n/a n/a Ireland     1.8 2 1.5 0.6 0.6 0.2 0.2 0.2 New Zealand 5.9 7.1 10.5 10.4 8.8 4.4 0.9 0.9 0.9 1.2 1.9 2.3 Total 4550.3 4155.3 3479.4 3131.2 2708.8 2352.6 1942.8 1679 1379.5 1190.7 1140.1 1012.3 Annual Growth %  9.5 19.4 11.1 15.6 15.1 21.1 15.7 21.7 15.9 4.4 12.6 Source: Merrill Lynch, Size and Structure of the World Bond Market 2002-April 2002. Factors Influencing Bond Markets The fluctuations in bond markets are caused by several economic factors, the most significant factor being a change in interest rates. Interest rates have an inverse relation with the bond price: as interest rates rise, the bond price falls and vice versa. Changes in interest rates could be due to changes in demand and supply of credit, fiscal and monetary policies, exchange rates, market psychology and inflation expectations. Inflation is considered to be yet another major factor affecting bond markets. Bond investors always have an aversion towards inflation. They fear inflation, as it lowers the value of bonds by reducing the future purchasing power of fixed interest payments they receive. Hence, any economic development that is likely to result in inflation causes panic in the bond markets. International bond markets are exposed to exchange-rate risk. Cash flows associated with foreign bonds are dependent on the exchange rate at the time the payments are received. Hence, fluctuations in the exchange rates cause changes in the value of bonds. India is expected to be a leading world economy (along with China) in the 21st century. Indias share of the worlds gross domestic product (GDP) is expected to rise from 6% in 2005 to 11% by 2025, making it the third largest economy in the world behind the US and China. Few identified difficulties of underdeveloped India bond market Highly regulated: the Indian bonds markets are still in control of government, administrative fiat and regulatory authorities which control and determine all the interest rates, even the interest rates in corporate bonds are determined by the government. The interest rates set are not very encouraging therefore bonds do not attract many investors. Apart from that the level of stamp duty levied by governments on secondary transactions of bonds are very high which hinders the growth and development further. Restricting policies: Indian banks are very much act on the guidelines, principles issued by the central bank and government. The policies implemented are very de motivate banks to involve in other activities. For example priority sector lending policy which mandates the banks to account 30% of their lending to these sectors, even though they are less productive like transport, agriculture are sectors Indian government recommends on. Limited Investor base; Indian bond mark et have limited investor base. Generally corporate bonds are held by government, provident funds, insurance companies, banks and many other financial institutions. These institutions hold till maturity, due to which the supply of funds become limited and inadequate in market. Therefore if the bond market has to improve, the general attitude of these institutions must change, involve themselves in trading to reduce risk, improve profits so and so forth. Ease on foreign investors will again improve the bond market. Inadequate transparency: since the prices are not determined by the market forces, this discourages investors to trade and very low trading activities do not provide the economy with better flexibility and liquidity to market overall. Unreliable Information signals: Indian bond market is not well supported with information and technology systems by which it faces many difficulties and delay in flow of information. Due to the delay in complete system the participants a re not aware of full information to understand their positions at end of the day which is not motivating for well timed decision making. Countries like US, Japan use various means to spread the relevant news and information like financial reports, profit statements, industrial meetings, and rating agencies and so on for enhance and smooth the flow of information through out the market. From the study few Recommendations for an active corporate bond market Infrastructure Financing Infrastructure financing in India offer a chance for developing the commercial bond markets but not depend on the growth of this market. Financing through different banks are not possible for the projects as they are for long periods. Banks cannot give 30 years loan facility as they can accept loans only for 5-10 years; this will leads towards asset liability mismatch. However, if the liquid market provide exit path, then it would be feasible for banks to purchase 30 year bonds. In contrast insurance firm or pension fund can buy long term bonds as they get the facility to sell which the secondary market can provide Securitization The need for a market for securitised products is another related issue for infrastructure financing. In India, three major areas Mortgage Backed Securities (MBS), Infrastructure Sector and other Asset backed securities (ABS) are important. For financing long term projects, individuals should get entrance in debt market like Special economic zones (SEZ). Expanding in domestic demand, export growth and growth in industrial investments will ultimately boost up the requirement of bond financing. Mismatch of currencies and over dependence of ASIAN corporations on short term foreign funds were the big causes of Asian Financial Crisis. It caused the fast outflow of capital from Asian countries and confidence in these countries began lighten. If the domestic markets dominated in their own currencies and more developed in Asia, then the Asian crisis would never strong enough as it destroyed the Asian markets. One of the ways to avoid risk is development of local currency market, whi ch will ultimately help to reduce potential currency and maturity mismatches in financial system. The development of an active debt market is required for  capital account convertibility which is also recommended by Tarapore committee. Apart from its fundamental role of achieving allocation efficiency, a well-developed government bond market strengthens the monetary policy implementation framework by equipping a central bank with market-based indirect instruments. A vibrant corporate debt market allows a corporation to access a set of standardized rates and fees instead of making individual negotiations with financial institutions. However corporations have difficulty issuing high value bonds in India, thus resulting in the incremental credit rate increasing from Rs 2.5 lakh (100k) crore (10m) in 2004-05 to Rs 3.7 lakh crore in 2005-06. Banks may find that their appetite for lending is taken up by large issuing corporations. If the Bond market becomes stagnant and bond, securities, loans etc cannot be issued by smaller institutions. Larger corporations develop a preference for acquiring finance via the Bonds and securities markets etc and Banks will have to react to this and concentrate more of their resources on developing the SME sector. The emergence of the  Pension fund industry In any country, Pension fund industry have some connections with the capital market, Same is the case is in India; they also invested in government securities. Investor base needs to be broadened: Though FIIs is allowed to invest up to $1.5 billion in corporate bonds, this amount is not enough to invest in this market. So, FIIs should allow investing more in this market. Widening the issuer base Banks should be allowed to issue bonds of maturity over 5 years based on their asset liability as they are allowed to issue bonds over 5 years only for financing infrastructure sector. Development of derivatives market Corporate, banks and other financial intuitions can reallocate the risk with the help of derivatives. Exchange traded derivatives perform different role to play in debt market and have to be standardised products because of their nature. If we discuss the OTC, they can be changed according to the situations. Hence both derivatives play vital role in the development of the market. Governments Investors should be provided by the repo market that will help them to manage short- term capital requirements. Market making By supporting corporate debt market, market making should be encouraged and it can be done with the help of primary dealers to do this job. Listing norms to be eased For already listed entities, there listing norms should be simpler; they should be allowed an abridged version of disclosure. However, companies which are not listed and which are opting for the private placement mode should be subjected to stringent disclosure norms. The practice of suspension of trading/delisting of securities in case of non-compliance with listing norms by an issuer needs to be replaced by heavy penalties on the promoters and directors of the erring company. Developing a trade reporting system A data base system is needed that publicize and store all the information related to trade in corporate bonds. So that all the transaction should be done through this system. Trading, clearing and settlement mechanism: A healthy trading policy would go a long way in facilitating efficient price discovery in corporate bonds as it created in depth and vibrancy to market along with the development of corporate bond markets by minimising the counterparty and settlement risk. In India, we have the opportunity to build up first- rate credit rating institutions. Specialized debt funds for infrastructure financing For infrastructure financing, specialised debt funds should be created with the same tax providing facility as provided by the venture capital fund that is registered SEBI. Developing a market for debt securitization: Indian government should make efforts to settle the uncertainty in taxation issues; this will help in developing a market for debt securitization. Cost of Issuance Majority of the issuers choose private placement due to the high cost of issuance. So the stamp duty should be trim down. Standardization In order to reduce transaction cost, standardized trading and settlement processes should enhance liquidity that also helps in improving market liquidity. These are some factors that are missing in Indian micro structure. Bond measurement techniques Bond yield: The return on which an investor will receive by holding a bond to maturity. So if you want to know how much your bond investment will earn, you should know how to calculate yield. The investor can decided on his earnings by calculating the yield. Below are the useful calculations that are required for the investors: Calculating Current Yield: If investor purchased a bond with a par value of $100 for $95.92 and that bond paid a coupon rate of 5%, by using the above formula we can calculate its current yield: If bond is at discount or premium By taking same data from the first example, and considering maturity period of 30 months and a coupon payment of $5 we can calculate current yield as shown below: Since the bond is at discounted price the adjusted current yield is 6.84% which is higher than the current yield 5.21% and their by investor gets more earnings Coupon payment for a zero-coupon bond  n = years left until maturity When zero-coupon bond is considered having the future value of $1,000 that matures in two years and currently available at $925, one can calculate its current yield with the following formula:  Calculating Yield to Maturity {YTM} YTM is the interest rates by which the present values of all the future cash flows are equal to the bonds price.  Its value is derived by the following equation. OR Example 1: You purchased a bond having par value of $100 which has current yield of 5.21% as is priced at $95.92. It pays semi annual coupon of 5% and matures in 30 months. The above problem is solved as shown below: 1. Determine the Cash Flows:   coupon payment obtained for every six months are $2.50 (0.025*100). In total, for five payments, calculate cash flows along with the future value of $100. 2. Plug the Known Amounts into the YTM Formula:  Note: semi-annual interest rates are calculated as the bond pays the coupon semi-annually. 3. Guess and Check:  Now we have to calculate I or the interest rate by considering bond price and the yield rather than picking the random numbers. When the value of the bond is at par, the interest rate is equal to the coupon rate. If the value is above par (at a premium), the coupon rate is said to be greater than the interest rate. In our example, the bond is at discount so the annual interest rate must be greater than the coupon rate of 5%. Now by using the different interest rates which are greater than 5%, we obtain the different bond prices as shown in the table. Since our bond price is $95.52 that lies between 6% and 7% we have to form a new table of more interest rates that lies between 6% and 7%. When the interest rate is 6.8% the bond price matches $95.92.Hence the semi annual interest rate is 3.40 % By using these calculations investors can decide on their earnings based on their investment capacity, holding period, and the interest they want to earn. Since the bond markets are more secured because of the involvement of government, the returns are guaranteed and low when compared to the stock market.