Question

List major types of corporate bonds and distinguish among them?

Answer 1

Key Characteristics common to bonds - Face Value. The principal position of the loon, its the amount you get back from the issues the day the bond mcituses. A bonds price which is in coristant fluxe, can be more or less than the face value - Maturity: The day the bond comes deve - Coupon : Because the bonds used to come with attached ccepons that invester had to dip and redeem for their interest payments (now its all dine electronically, the size the interest paynient is still called the coupon.

Another cominion feature among bonds is that yield yeild is the measure of their volue. Generally higher a bond yeilds, the more Credit or interest rate orisk it cantiles. Maicon types of coaporate bonds : 1. Guarantee bond 2. Income bend 3. Zero capon bond 4. Speculative bend Gjenk bond) 5. Euro bond. 6. Euro dollar bonds 7. Corporate commercial paper 8. Negotiable CD 9. Bankers Acceptance 10. Repurchase agreements (Repos) onne -

NITI TETTE IN SOLVENT Insolvency is a state of being onable to pay the money owed by a person or comporny on time those in a state of insolvency are said to insolvent LIQUIDATION: It is an event that esirilly occus when a company is insolvent The companies operations ac breught to an end and its assets are devvied up among Creditars and share holders, according to the periostity of their clients. REORGANIZATION: It is a process designed to revive o financially forebouled oor bankrupt firm, it inselves rrestartement of assets and liabilities as well as holding talks with creditazs in order to make arrangements for maintaining stepayments.