Which of the following bonds would be least attractive to an investor? Secured (Collateralized) Sinking fund...
Which of the following bonds would be least attractive to an investor?
|
Secured (Collateralized) |
|
|
Sinking fund |
|
|
Callable |
|
|
Retractable |
|
|
Puttable |
Homework Answers
Option C is correct. Callable
Callable bonds are the bonds which are called by the issuer before the maturity at a pre determined price.
When the interest in the market decrease the issuer calls the Bonds and raise the cheap Debt again which is unfavourable to the investor. Investor are obligated to sell the Bond even if they do not want to.
NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.
Add Answer to:
Which of the following bonds would be least attractive to an
investor?
Secured (Collateralized)
Sinking fund...
Which of the following statements is FALSE of bonds without the following features? Secured debt has...
Which of the following statements is FALSE of bonds without the following features? Secured debt has lower coupons A bond with a sinking fund has lower coupons. A callable bond has a higher coupon Subordinate debt has higher coupons. Senior, secured debt has higher coupons.
Bonds which are not collateralized by specific assets in the event the borrowing company defaults on...
Bonds which are not collateralized by specific assets in the event the borrowing company defaults on bond payments are called: Select one: a serial bonds b. secured bonds. c callable bonds. d. convertible bonds e unsecured bonds
Sinking fund arrangements are least apt to contain which one of these requirements? A. a deferred...
Sinking fund arrangements are least apt to contain which one of these requirements? A. a deferred provision for the first few years B. a one-time repayment of the entire principal and interest at maturity C. a balloon payment D. equal payments of principal over the life of the bond E. sufficient payments over the bonds’ life to retire the entire bond issue
You are a corporate treasurer who will purchase $1 million of bonds for the sinking fund...
You are a corporate treasurer who will purchase $1 million of bonds for the sinking fund in 3 months. You believe rates will soon fall, and you would like to repurchase the company’s sinking fund bonds (which currently are selling below par) in advance of requirements. Unfortunately, you must obtain approval from the board of directors for such a purchase, and this can take up to 2 months. What action can you take in the futures market to hedge any...
Which ONE of the following bonds is the SAFEST investment for a bond investor? O A...
Which ONE of the following bonds is the SAFEST investment for a bond investor? O A debenture with a 2020 maturity date A subordinated debenture with a 2050 maturity date A subordinated debenture with a 2020 maturity date A secured bond with a 2020 maturity date
Brief Exercise G-4 Cullumber Company issued $1,300,000, 11-year bonds and agreed to make annual sinking fund...
Brief Exercise G-4 Cullumber Company issued $1,300,000, 11-year bonds and agreed to make annual sinking fund deposits of $75,300. The deposits are made at the end of each year into an account paying 9% annual interest cick here to view the factor table Future Value 1 Cick here to the factor table Future Value of an Annuity of 1 (For calculation purposes, se decimal places as displayed in the factor table provided.) What amount will be in the sinking fund...
Brief Exercise G-4 Cullumber Company issued $1,300,000, 11-year bonds and agreed to make annual sinking fund...
Brief Exercise G-4 Cullumber Company issued $1,300,000, 11-year bonds and agreed to make annual sinking fund deposits of $75,300. The deposits are made at the end of each year into an account paying 9% annual interest cick here to view the factor table Future Value 1 Cick here to the factor table Future Value of an Annuity of 1 (For calculation purposes, se decimal places as displayed in the factor table provided.) What amount will be in the sinking fund...
Question 2 (2 points) Which of the following would be most appropriate for an investor who...
Question 2 (2 points) Which of the following would be most appropriate for an investor who is approaching retirement and concerned about inflation? an indexed equity mutual fund O a managed equity fund O corporate bonds Treasury Inflation Protected Securities (TIPS) Question 3 (2 points) As the time nears when you expect to use funds in your retirement portfolio, you will reduce your risk if you move more of your assets into stocks and out of bonds. move all of...
Catastrophe bonds are attractive to investors due to which of the following(s): multiple c...
Catastrophe bonds are attractive to investors due to which of the following(s): multiple choice: The returns on these bonds are relatively high compared to other bonds The principle invested into these bonds is relatively secure compared to other bonds The returns on these bonds are uncorrelated with the market
____8. Which of the following is NOT a characteristic of bonds? A- Secured bonds B-Coupon bonds...
____8. Which of the following is NOT a characteristic of bonds? A- Secured bonds B-Coupon bonds C-Variable bonds D-Serial bonds E-All of these 9. The total interest expense associated with a bond issue is the sum of the actual interest payments: A-Plus any related bond discount B-Plus any related bond premium C-Minus any related bond discount D-Minus any related bond premium E-Both A and D 10. The amount at which bonds payable should be shown on the balance sheet is...
Which of the following statements is FALSE of bonds without the following features? Secured debt has lower coupons A bond with a sinking fund has lower coupons. A callable bond has a higher coupon Subordinate debt has higher coupons. Senior, secured debt has higher coupons.
Bonds which are not collateralized by specific assets in the event the borrowing company defaults on bond payments are called: Select one: a serial bonds b. secured bonds. c callable bonds. d. convertible bonds e unsecured bonds
Which ONE of the following bonds is the SAFEST investment for a bond investor? O A debenture with a 2020 maturity date A subordinated debenture with a 2050 maturity date A subordinated debenture with a 2020 maturity date A secured bond with a 2020 maturity date
Brief Exercise G-4 Cullumber Company issued $1,300,000, 11-year bonds and agreed to make annual sinking fund deposits of $75,300. The deposits are made at the end of each year into an account paying 9% annual interest cick here to view the factor table Future Value 1 Cick here to the factor table Future Value of an Annuity of 1 (For calculation purposes, se decimal places as displayed in the factor table provided.) What amount will be in the sinking fund...
Brief Exercise G-4 Cullumber Company issued $1,300,000, 11-year bonds and agreed to make annual sinking fund deposits of $75,300. The deposits are made at the end of each year into an account paying 9% annual interest cick here to view the factor table Future Value 1 Cick here to the factor table Future Value of an Annuity of 1 (For calculation purposes, se decimal places as displayed in the factor table provided.) What amount will be in the sinking fund...
Question 2 (2 points) Which of the following would be most appropriate for an investor who is approaching retirement and concerned about inflation? an indexed equity mutual fund O a managed equity fund O corporate bonds Treasury Inflation Protected Securities (TIPS) Question 3 (2 points) As the time nears when you expect to use funds in your retirement portfolio, you will reduce your risk if you move more of your assets into stocks and out of bonds. move all of...
Most questions answered within 3 hours.
-
It is hypothesized that when homing pigeons are disoriented in a
certain manner, they will exhibit...
asked 4 minutes ago -
Describe the steps in Project Planning and Scheduling
WBS
Network Diagram
Developing the Schedule
Preparing the...
asked 5 minutes ago -
What types of evidence are used to reconstruct the history of
ocean chemistry, including changes in...
asked 10 minutes ago -
Assume you are now 21 years old and
will start working as soon as you graduate...
asked 19 minutes ago -
In c++
What does operator overloading allow us to do
?
Why must the << and...
asked 19 minutes ago -
First, a constant force will NOT cause an object to accelerate
faster and faster; it will...
asked 23 minutes ago -
A 4.75 kg crate is suspended from the end of a short vertical
rope of negligible...
asked 33 minutes ago -
develop an automated invoice generator that helps a shop owner
to design their invoice. Problem 1...
asked 41 minutes ago -
2. Binomial Distribution Suppose I have an unfair coin, it lands
on heads 75% of the...
asked 55 minutes ago -
negotiators with absolutely no alternative to a negotiated
agreement sometimes.
a. become hostile and end the...
asked 54 minutes ago -
Write a Verilog program that tests whether a 4-bit input
variable is a Fibonacci number or...
asked 1 hour ago -
MYSQL
Consider the sql statement "select * from t1 UNION t2" where t1
and t2 are...
asked 1 hour ago