Which of the following features allows a borrower to redeem or repurchase a bond issue before...
-
Which of the following features allows a borrower to redeem or repurchase a bond issue before its maturity date?
a. The call provision
b. Convertibility
c. Floating rate
d. The priority of claims
Homework Answers
Callable bonds have a provision in the bond indenture to buy back the bond before maturity
Add Answer to:
Which of the following features allows a borrower to redeem or
repurchase a bond issue before...
A call feature allows A.the bondholder to redeem the bond before the maturity date. B.the corporation...
A call feature allows A.the bondholder to redeem the bond before the maturity date. B.the corporation to redeem the bond before the maturity date. C,the corporation to convert the bond to common stock. D,the bondholder to demand increased collateral.
Question 2 1 pts If the terms of a bond issue allow a corporation to redeem...
Question 2 1 pts If the terms of a bond issue allow a corporation to redeem the bonds prior to their maturity date, then the bonds are said to contain a(n): capital gains provision interest rate provision call provision 0 put provision 0 coupon provision
Hialurily date. • A bond issuer is said to be in default if it does not...
Hialurily date. • A bond issuer is said to be in default if it does not pay the interest or the principal in accordance with the terms of the indenture! agreement or if it violates one or more of the issue's restrictive covenants. • A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a sinking fund provision • A bond's call provision gives the issuer the right to...
The "call" provision on some bonds allows A.the bondholder to redeem the bond earlier than maturity,...
The "call" provision on some bonds allows A.the bondholder to redeem the bond earlier than maturity, but usually involves a call premium. B.the corporation to request additional capital contributions from the bondholder. C.the corporation to redeem the bonds earlier than maturity but usually for a premium over the par value. D.the bondholder to convert the bond into preferred stock.
e effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential....
e effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: • A bond’s is generally $1,000 and represents the amount borrowed from the bond’s first purchaser. • A bond issuer is said to be in if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue’s restrictive covenants. • The contract that describes the...
A bond issued by a corporation with a provision that allows the issuer to repurchase the...
A bond issued by a corporation with a provision that allows the issuer to repurchase the bond at a premium over par after a fixed time interval is called a: Treasury bond Debenture Development bond Callable bond In general, which of the following bonds carry the highest level of risk? Treasury Notes Corporate Bonds Municipal bonds Treasury bonds An 8% coupon bond maturing in 5 years has a yield to maturity of 10% and makes coupon payments semi-annually. What was...
22. Which of the following statements concerning preferred stocks is true? a. Preferred stockholders have anrior...
22. Which of the following statements concerning preferred stocks is true? a. Preferred stockholders have anrior claim on the income and assets of the firm as compared to the claims of lenders. b. Preferred stock dividends per share are normally increased as the earnings of the firm increase. c. Preferred dividends per share are usually not cut or suspended unless the firm is faced with serious financial problems. d. The par value of a stock is always the same as...
Beautiful New Homes, Inc., has a bond issue with a coupon rate of 5.5 percent that...
Beautiful New Homes, Inc., has a bond issue with a coupon rate of 5.5 percent that matures in 8.5 years. The bonds have a par value of $1,000 and a market price of $945. Interest is paid semiannually. The yield to maturity on bonds of comparable risk have yields to maturity of 5.5%. Is this bond a good investment? A. No, because the bond is worth less than the price. B. No, because the bond's yield to maturity is less...
Which of the following statements is true? A. A bond issue that requires the repayment of...
Which of the following statements is true? A. A bond issue that requires the repayment of the entire principal amount at maturity is said to have a balloon maturity. B. When a bond issue is repaid in multiple installments, the method of repayment is called a sinking fund. C. When the final repayment of principal is larger than its par value then it is called a bullet payment. D. When the required return equals the coupon rate, the fair price...
Which of the following events or bond contract features would increase the YTM on a corporate...
Which of the following events or bond contract features would increase the YTM on a corporate bond: (a) a provision in the bond that allows the issuer to buy back the bond (b) a convenant that limits management actions as the firm nears default (c) a positive increase in the priice of the firms stock (d) a decrease in the price of the firms stock
Question 2 1 pts If the terms of a bond issue allow a corporation to redeem the bonds prior to their maturity date, then the bonds are said to contain a(n): capital gains provision interest rate provision call provision 0 put provision 0 coupon provision
Hialurily date. • A bond issuer is said to be in default if it does not pay the interest or the principal in accordance with the terms of the indenture! agreement or if it violates one or more of the issue's restrictive covenants. • A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a sinking fund provision • A bond's call provision gives the issuer the right to...
22. Which of the following statements concerning preferred stocks is true? a. Preferred stockholders have anrior claim on the income and assets of the firm as compared to the claims of lenders. b. Preferred stock dividends per share are normally increased as the earnings of the firm increase. c. Preferred dividends per share are usually not cut or suspended unless the firm is faced with serious financial problems. d. The par value of a stock is always the same as...
Beautiful New Homes, Inc., has a bond issue with a coupon rate of 5.5 percent that matures in 8.5 years. The bonds have a par value of $1,000 and a market price of $945. Interest is paid semiannually. The yield to maturity on bonds of comparable risk have yields to maturity of 5.5%. Is this bond a good investment? A. No, because the bond is worth less than the price. B. No, because the bond's yield to maturity is less...
Most questions answered within 3 hours.
-
Can someone please help me add appropriate descriptive
comments to each line of code in the...
asked 2 minutes ago -
Romeo wishes to throw a bouquet of flowers to Juliet, who is on
a second-story balcony,...
asked 1 hour ago -
Why is QE a controversial monetary policy tool.
A. It may lead to excessive inflation.B. By...
asked 1 hour ago -
Principles of Programming midterm study guide help!
1.)
______ Which of the following would reference the...
asked 46 minutes ago -
A finite potential well has depth U0 = 2.78 eV . What is the
penetration distance...
asked 1 hour ago -
1. The bus bars of a power station are in two sections A and B
separated...
asked 1 hour ago -
Fiscal policy is the deliberate manipulation of taxes and
government spending to alter GDP, employment, inflation...
asked 2 hours ago -
evaluating an expression using only one digit and + and - as
operators ....3+5-1+7-5+8
-----------------------
stack...
asked 2 hours ago -
Two concentric current loops lie in the same plane. The smaller
loop has a radius of...
asked 3 hours ago -
1)Which of the following is an
important difference between qualified and nonqualified retirement
plans?
a. Qualified...
asked 3 hours ago -
What's the streaming business's problem on the
horizon?
asked 4 hours ago -
I need help with writing the conclusion for this online lab
report
Abstract
By testing the...
asked 4 hours ago