What is the effect coupon rate for Senior bond and Subordinated bond.
What is the effect coupon rate for Senior bond and Subordinated bond.
Homework Answers
The senior bond is the bond which receives the highest priority and thus it has the lowest level of risk. This bond is backed by the banks and so is very safe ti invest. The coupon rate offered in these bonds is low in comparison to the subordinated bonds. Subordinated bonds, are bonds which have the lowest priority in payment and so it carries the highest coupon rate along with it. As the subordinated bonds carries a risk of default along with it , it offers a higher coupon rate to attract investors.
Add Answer to:
What is the effect coupon rate for Senior bond and Subordinated
bond.
Describe Secured Bond and Unsecured bond. What is the difference? Describe Senior bond and Subordinated bond....
Describe Secured Bond and Unsecured bond. What is the difference? Describe Senior bond and Subordinated bond. What is the difference? Describe Callable bond, Non-callable bond, and Puttable bond. What is the difference between the Describe a bond with positive convenants and bond with negative convenants. What is the difference. What is the effect coupon rate for Secured Bond and Unsecured bond. What is the effect coupon rate for Senior bond and Subordinated bond. What is the effect coupon rate for...
What is the effect coupon rate for Callable bond, Non-callable bond, and Puttable bond?
What is the effect coupon rate for Callable bond, Non-callable bond, and Puttable bond?
Blank 1 Junior mortgage bonds Senior mortgage bonds Debentures Subordinated Debentures Blank 2 Subordinated Debentures Senior...
Blank 1
Junior mortgage bonds
Senior mortgage bonds
Debentures
Subordinated Debentures
Blank 2
Subordinated Debentures
Senior Mortgage Bonds
Debentures
Junior mortgage bonds
Blank 3
Senior mortgage bonds
Debentures
Subordinated debentures
Junior mortgage bonds
6. More on types of bonds Aa Aa You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: Description Type of Bond These...
1. Assume you buy a bond with the following features Bond maturity = 6 Coupon Rate...
1. Assume you buy a bond with the following features Bond maturity = 6 Coupon Rate = 5.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 5.00% Immediately after you buy the bond the interest rate changes to 5.50% What is the "price risk" effect in year 4 ? Group of answer choices -$9.23 -$8.95 $8.95 -$9.51 $9.51 $9.23 2. Assume you buy a bond with the following features Bond maturity =...
What is the semi-annual coupon payment on a bond with an 8% coupon rate?
What is the semi-annual coupon payment on a bond with an 8% coupon rate?
1. Why do callable bonds usually pay a higher coupon rate than noncallable bonds? A. To...
1. Why do callable bonds usually pay a higher coupon rate than noncallable bonds? A. To compensate investors for their extra tax liability B. Because callable bonds have greater default risk than noncallable C. To compensate investors who might suffer a loss as a result of their bonds being called D. To comply with SEC regulations E. None of the above 2. You own a convertible bond issued by MJ9 Corporation that can be exchanged for 60 shares of the...
1. (1)Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate...
1. (1)Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 7.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 7.00% Immediately after you buy the bond the interest rate changes to 8.20% What is the "reinvestment" effect in year 4 ? Group of answer choices -$5.73 $5.73 -$5.57 $5.57 (2)Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate =...
Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate =...
Assume you buy a bond with the following features Bond maturity = 4 Coupon Rate = 5.00% Face Value = $1,000 Annual Coupons When you buy the bond the market interest rate = 6.00% Immediately after you buy the bond the interest rate changes to 5.50% What is the "reinvestment" effect in year 3 ?
Bond maturity 4 Years initial interest rate = 4.00% Coupon Rate 3.00% Annual Coupon Face Value...
Bond maturity 4 Years initial interest rate = 4.00% Coupon Rate 3.00% Annual Coupon Face Value $1,000.00 Dollar Coupons $30.00 Given the information in the table, what is the price effect in year 3 if the interest rate changes from 4.00% to 6.00 %?
A bond has a par value of $1,000, a current yield of 8.15 percent, and semiannual coupon payments. The bond is quoted at 103.51. What is the coupon rate of the bond?
1. A bond has a par value of $1,000, a current yield of 8.15 percent, and semiannual coupon payments. The bond is quoted at 103.51. What is the coupon rate of the bond?2. Kasey Corp. has a bond outstanding with a coupon rate of 5.94 percent and semiannual payments. The bond has a yield to maturity of 5.1 percent, a par value of $2,000, and matures in 20 years. What is the quoted price of the bond?3. A bond with...
Blank 1
Junior mortgage bonds
Senior mortgage bonds
Debentures
Subordinated Debentures
Blank 2
Subordinated Debentures
Senior Mortgage Bonds
Debentures
Junior mortgage bonds
Blank 3
Senior mortgage bonds
Debentures
Subordinated debentures
Junior mortgage bonds
6. More on types of bonds Aa Aa You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: Description Type of Bond These...
1. Why do callable bonds usually pay a higher coupon rate than noncallable bonds? A. To compensate investors for their extra tax liability B. Because callable bonds have greater default risk than noncallable C. To compensate investors who might suffer a loss as a result of their bonds being called D. To comply with SEC regulations E. None of the above 2. You own a convertible bond issued by MJ9 Corporation that can be exchanged for 60 shares of the...
Most questions answered within 3 hours.
-
find the critical value associated with a right sided hypothesis of
the mean using a sample...
asked 59 minutes ago -
Which of the following statements is true with respect to a
simple linear regression model?
a....
asked 1 hour ago -
The energy required to remove an electron from a surface of a
solid element is called...
asked 3 hours ago -
How would you train your employees to avoid risks of using
mobile devices?
asked 3 hours ago -
Assume Kw = 1.01 ✕ 10−14
For pure water, we can calculate [H3O+ ] = [OH...
asked 4 hours ago -
Suppose that on a temperature scale X, water boils at 203.0°X
and freezes at -105.7°X. What...
asked 5 hours ago -
BaS crystallizes in a cubic unit cell with S2- ions on each
corner and each face....
asked 5 hours ago -
A. 0≤P(Oi)≤10≤P(Oi)≤1 for each i
B. P(Oi)≤0P(Oi)≤0
C. P(Oi)=1+P(OCi)P(Oi)=1+P(OiC)
D. P(Oi)≥1P(Oi)≥1
If an experiment consists of...
asked 7 hours ago -
A battery has an emf of 9.20V and an internal resistance of 1.20
ohm. a)What resistance...
asked 7 hours ago -
The area of an elastic circular loop decreases at a constant
rate, dA/dt = −6.60×10−3 m2/s...
asked 8 hours ago -
The denaturation of proteins can be described by the
equilibrium
F⇌U
where F and U represent...
asked 9 hours ago -
Please answer what the maximum and minimum force is, and the
angle on the ion is...
asked 9 hours ago