26/12 H2 results at GlaxoSmithKline: Quick Note

Research evidence excerpt

26/12 H2 results at GlaxoSmithKline: Quick Note

s. Bond prices may also fall below the invested principal as a result of such factors as changes in the management and financial

circumstances of the issuer, or changes in third-party valuations of the bond in question. In addition, foreign currency-denominated bonds also

carry the risk of losses owing to factors such as foreign exchange rate fluctuations.

When Japanese government bonds (JGBs) for individual investors are purchased via public offerings, only the purchase price shall be paid, with

no sales commission charged. As a rule, JGBs for individual investors may not be sold in the first 12 months after issuance. When JGBs for

individual investors are sold before maturity, an amount calculated via the following formula will be subtracted from the par value of the bond

plus accrued interest: (1) for 10-year variable rate bonds, an amount equal to the two preceding coupon payments (before tax) x 0.79685 will be

used, (2) for 5-year and 3-year fixed rate bonds, an amount equal to the two preceding coupon payments (before tax) x 0.79685 will be used.

When inflation-indexed JGBs are purchased via public offerings, secondary distributions (uridashi deals), or other OTC transactions with

Nomura Securities, only the purchase price shall be paid, with no sales commission charged. Inflation-indexed JGBs carry the risk of losses, as

prices fluctuate in line with changes in market interest rates and fluctuations in the nationwide consumer price index. The notional principal of

inflation-indexed JGBs changes in line with the rate of change in nationwide CPI inflation from the time of its issuance. The amount of the

coupon payment is calculated by multiplying the coupon rate by the notional principal at the time of payment.