What term is used to describe an account that a bond trustee manages for the sole...
What term is used to describe an account that a bond trustee manages for the sole purpose of redeeming bonds early?
Bearer account
Registered account
Sinking fund
Premium fund
Call account
Homework Answers
Ans Sinking fund
Sinking fund is used to describe an account that a bond trustee manages for the sole purpose of redeeming bonds early. Sinking fund is a fund performed by periodically setting aside money for replacing asset or payment of debts.
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What term is used to describe an account that a bond trustee
manages for the sole...
Sinking funds are devices used to force companies to retire bonds on a scheduled basis prior...
Sinking funds are devices used to force companies to retire bonds on a scheduled basis prior to their maturity. Many bond indentures allow the company to acquire bonds for a sinking fund by either purchasing bonds in the market or selecting the bonds to be acquired by a lottery administered by the trustee through a call at face value.
sinking funds are devices used to force companies to retire bonds on a scheduled basis prior...
sinking funds are devices used to force companies to retire bonds on a scheduled basis prior to their maturity. Many bond indentures allow the company to acquire bonds for a sinking fund by either purchasing bonds in the market or selecting the bonds to be acquired by the lottery administered by the trustee through a call at face value. True or False
Term Answer Description Zero coupon bond This term is used for bonds that are secured by a specific asset that the bond...
Term Answer Description Zero coupon bond This term is used for bonds that are secured by a specific asset that the bond issuer owns. Equipment Trust Certificate This type of municipal bond is backed by the full faith and credit of the issuing municipality. The coupon payments are likely to paid by the taxes that the municipality collects. Sinking Fund This is a bond provision that specifies the annual repayment schedule that will be used to service the bond and...
Select the phrase that best fits each term of the description A through H. A. Description...
Select the phrase that best fits each term of the description A through H. A. Description Records and tracks the bondholders' names. Is unsecured; backed only by the issuer's credit standing. Has varying maturity dates for amounts owed. The legal contract between the issuer and the bondholders. Can be exchanged for shares of the issuer's stock. Is unregistered; interest is paid to whoever possesses them. Maintains a separate asset account from which bondholders are paid at maturity. Pledges specific assets...
Define the Following terms. What is Capital structure? Example of Debt/ Equity instruments What Is a...
Define the Following terms.
What is Capital structure? Example of Debt/ Equity instruments What Is a bond? Bond Terminology/Features: Indenture Principal/Par value/face value Coupon Rate Coupon/ coupon payment Maturity (maturity date) Yield to maturity Discount and Premium bonds Collateral Sinking fund Call provision Call premlum Call protection Bond rating Types of bonds Secured bonds Mortgage bonds Debentures Putable bonds
Term Answer Description Coupon A. This term is used to define the provision which allows the...
Term Answer Description Coupon A. This term is used to define the provision which allows the bond issuer to settle the payments towards the bond before the maturity. 0 B. Equipment Trust Certificate Sinking Fund 0 C. This term is used to state the quoted value of a bond but does not include the value of any accrued interest that bondholders would eam. This term defines the number of shares of common stock that a bondholder will receive when they...
E10-18 LOTO Recording the Early Retirement of a Bond Issued at a Discount (with Discount Account)...
E10-18 LOTO Recording the Early Retirement of a Bond Issued at a Discount (with Discount Account) Several years ago, Nicole Company issued bonds with a face value of $1.000.000 for $945.000. As a result of declining interest rates, the company has decided to call the bond at a call premium of 5 percent over par. The bonds have a current book value of $984,000. Record the retirement of the bonds, using a dis count account
A bond has the following features 10 percent • Coupon rate of interest (paid annually ....
A bond has the following features 10 percent • Coupon rate of interest (paid annually . Principal: $1,000 • Term to maturity: 9 years What will the holder receive when the bond matures? b. If the current rate of interest on comparable debt is a percent, what should be the price of this band? Assume that the bond pays interest annually. Use Appendix to answer the question. Round your answer to the nearest dollar and Appen Would you expect the...
1st blank options = par value, coupon payment, price 2nd blank options = bankruptcy, default, liquidation...
1st blank options = par value, coupon payment, price
2nd blank options = bankruptcy, default, liquidation
3rd blank options = convertible provision, sinking fund
provision, call provision
4th blank options= call provision, call premium,
convertibility provision
5th blank options = floating-rate, fixed-rate
6th blank options = indenture, trustee, debenture
7th = multiple choice
1. Characteristics of bonds To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: • A bond's_ par...
1. Name two other types of business organizations other than Sole proprietorship and define and explain...
1. Name two other types of business organizations other than Sole proprietorship and define and explain the differences between all the three 2. Compare and contrast obtaining a charter of incorporation in the State of Georgia with obtaining one in the State of Delaware. 3. If a company obtains a charter of incorporation in the State of Georgia and decides to operate in both Georgia and the State of Ohio, what would be your advice regarding the owner arguing that...
Term Answer Description Zero coupon bond This term is used for bonds that are secured by a specific asset that the bond issuer owns. Equipment Trust Certificate This type of municipal bond is backed by the full faith and credit of the issuing municipality. The coupon payments are likely to paid by the taxes that the municipality collects. Sinking Fund This is a bond provision that specifies the annual repayment schedule that will be used to service the bond and...
Select the phrase that best fits each term of the description A through H. A. Description Records and tracks the bondholders' names. Is unsecured; backed only by the issuer's credit standing. Has varying maturity dates for amounts owed. The legal contract between the issuer and the bondholders. Can be exchanged for shares of the issuer's stock. Is unregistered; interest is paid to whoever possesses them. Maintains a separate asset account from which bondholders are paid at maturity. Pledges specific assets...
Define the Following terms.
What is Capital structure? Example of Debt/ Equity instruments What Is a bond? Bond Terminology/Features: Indenture Principal/Par value/face value Coupon Rate Coupon/ coupon payment Maturity (maturity date) Yield to maturity Discount and Premium bonds Collateral Sinking fund Call provision Call premlum Call protection Bond rating Types of bonds Secured bonds Mortgage bonds Debentures Putable bonds
Term Answer Description Coupon A. This term is used to define the provision which allows the bond issuer to settle the payments towards the bond before the maturity. 0 B. Equipment Trust Certificate Sinking Fund 0 C. This term is used to state the quoted value of a bond but does not include the value of any accrued interest that bondholders would eam. This term defines the number of shares of common stock that a bondholder will receive when they...
E10-18 LOTO Recording the Early Retirement of a Bond Issued at a Discount (with Discount Account) Several years ago, Nicole Company issued bonds with a face value of $1.000.000 for $945.000. As a result of declining interest rates, the company has decided to call the bond at a call premium of 5 percent over par. The bonds have a current book value of $984,000. Record the retirement of the bonds, using a dis count account
A bond has the following features 10 percent • Coupon rate of interest (paid annually . Principal: $1,000 • Term to maturity: 9 years What will the holder receive when the bond matures? b. If the current rate of interest on comparable debt is a percent, what should be the price of this band? Assume that the bond pays interest annually. Use Appendix to answer the question. Round your answer to the nearest dollar and Appen Would you expect the...
1st blank options = par value, coupon payment, price
2nd blank options = bankruptcy, default, liquidation
3rd blank options = convertible provision, sinking fund
provision, call provision
4th blank options= call provision, call premium,
convertibility provision
5th blank options = floating-rate, fixed-rate
6th blank options = indenture, trustee, debenture
7th = multiple choice
1. Characteristics of bonds To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: • A bond's_ par...
1. Name two other types of business organizations other than Sole proprietorship and define and explain the differences between all the three 2. Compare and contrast obtaining a charter of incorporation in the State of Georgia with obtaining one in the State of Delaware. 3. If a company obtains a charter of incorporation in the State of Georgia and decides to operate in both Georgia and the State of Ohio, what would be your advice regarding the owner arguing that...
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