What does it mean when a company's corporate spread tightens?
What does it mean when a company's corporate spread tightens?
The benchmark yield is outperforming the company's bonds.
The company's borrowing cost increases.
The company's borrowing capacity will become more restrictive.
The company's bonds are outperforming the benchmark yield.
Homework Answers
Typically, the yield to maturity on corporate bonds will be ___________ the more restrictions are placed...
Typically, the yield to maturity on corporate bonds will be ___________ the more restrictions are placed on management through restrictive covenants, because ____________. a. higher; corporate earnings will be lower when a bond has restrictive covenants b. higher; the bond’s will be considered safer by investors c. lower; the bonds will be considered safer by investors d. lower; corporate earnings will be higher when a bond has restrictive covenants
As a potential corporate governance expert, what does it mean when we say good corporate governance...
As a potential corporate governance expert, what does it mean when we say good corporate governance is about accountability, corporate responsibility, efficiency and transparency towards shareholders and stakeholders?
The choices for the blanks, in order, are: fall/rise narrowing/widening higher/lower low/high rise/fall decreasing/increasing Corporate-Bond Issuers...
The choices for the blanks, in
order, are:
fall/rise
narrowing/widening
higher/lower
low/high
rise/fall
decreasing/increasing
Corporate-Bond Issuers Race to the Market as U.S. Yields Approach Record Low On April 25, 2011, the Fed announced that short-term interest rates would be kept near zero through late 2014. Because corporate bonds are indexed to Treasury yields and the Treasury yield hit nearly all-time lows, issuing conditions became conducive for investment-grade borrowers. Europe's debt crisis fueled the demand for relatively safer U.S. securities, and...
When the degree of uncertainty about the economy increases, the spread in the promised yield-to-maturity between...
When the degree of uncertainty about the economy increases, the spread in the promised yield-to-maturity between high and low-rated bonds tends to (a) decrease. (b) increase or decrease depending on the coupon. (c) widen. (d) reverse the sign of the spread. (e) remain fixed.
19) curity: AAA Corporate 56 AA Corporate A Corporate BBB Corporate BB Corporate ield (%): A...
19) curity: AAA Corporate 56 AA Corporate A Corporate BBB Corporate BB Corporate ield (%): A mining company needs to raise $100 million in order to begin open-pit mining of a coal seam. The company will fund this by issuing 30-year bonds with a face value of $1,000 and a coupon rate of 6.5%, paid annually. The above table shows the yield to maturity for similar 30-year corporate bonds of different ratings. If the company's bonds are rated A, what...
In the period of the 2007 Financial Crisis, what factors impact interest rate spread on Baa Corporate...
In the period of the 2007 Financial Crisis, what factors impact interest rate spread on Baa Corporate Bonds versus Default Free US Treasury Bonds?
21. What does restrictive temperature mean? What does nonrestrictive temperature mean? 22. What function does the...
21. What does restrictive temperature mean? What does nonrestrictive temperature mean? 22. What function does the protein dynamin specifically perform in the cell? 23. What is happening to the dynamin protein in the shibire mutants at the molecular level at the restrictive and nonrestrictive temperatures? Think in terms of protein structure, function, and activity. 24. Find and describe one other human conditional allele (not PKU). 25. One of the overarching themes of this lab and accompanying class is the Central...
1. Describe this equation and what does it mean? When it would be used by an...
1. Describe this equation and what does it mean? When it would be used by an ecologist? dN/dt = rN 2. Describe this equation and what does it mean? When it would be used by an ecologist? dN/dt = r N (1 - N/K) 3 . Describe this equation and what does it mean? When would it be used by an ecologist? Nt = No ert 4. Distinguish between exponential and logistic population growth. Give the equations for each. 5....
Student version_2020.por 14) Since it has become easier to buy and sell stocks on the Internet,...
Student version_2020.por 14) Since it has become easier to buy and sell stocks on the Internet, one expects that the bond has fallen since bonds are liquid relative to stocks. a. demand, more b. supply, less c. demand, less d. supply, more 15) When the default risk on corporate bonds increases, other things equal, then a. the price of corporate bonds increases and the yield on government bonds decreases. b. the yield on corporate bond decreases and the price of...
The Economist article, “Many Unhappy Returns,” November 21, 2015, states the following, “The yield on long-dated...
The Economist article, “Many Unhappy Returns,” November 21, 2015, states the following, “The yield on long-dated Treasury bonds 25 years ago was more than 8%; an investor who held such bonds to maturity could lock in that nominal return. Now the yield on the 10-year Treasury bond is just 2.3%. Yields on corporate bonds, which pay a spread over government debt, have fallen in tandem. For equities, the dividend yield on the S&P 500 index in 1990 was 3.7%; now...
The choices for the blanks, in
order, are:
fall/rise
narrowing/widening
higher/lower
low/high
rise/fall
decreasing/increasing
Corporate-Bond Issuers Race to the Market as U.S. Yields Approach Record Low On April 25, 2011, the Fed announced that short-term interest rates would be kept near zero through late 2014. Because corporate bonds are indexed to Treasury yields and the Treasury yield hit nearly all-time lows, issuing conditions became conducive for investment-grade borrowers. Europe's debt crisis fueled the demand for relatively safer U.S. securities, and...
19) curity: AAA Corporate 56 AA Corporate A Corporate BBB Corporate BB Corporate ield (%): A mining company needs to raise $100 million in order to begin open-pit mining of a coal seam. The company will fund this by issuing 30-year bonds with a face value of $1,000 and a coupon rate of 6.5%, paid annually. The above table shows the yield to maturity for similar 30-year corporate bonds of different ratings. If the company's bonds are rated A, what...
Student version_2020.por 14) Since it has become easier to buy and sell stocks on the Internet, one expects that the bond has fallen since bonds are liquid relative to stocks. a. demand, more b. supply, less c. demand, less d. supply, more 15) When the default risk on corporate bonds increases, other things equal, then a. the price of corporate bonds increases and the yield on government bonds decreases. b. the yield on corporate bond decreases and the price of...
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