A debenture is:
a. an unsecured bond
b. a bearer form bond
c. a bond with a call of provison
d. a bond with a sinking fund provision
e. a bond secured by a blanket mortgage
A debenture is an unsecured bond issued by a company without secured by physical assets or collateral. Debentures have no collateral.
Bond buyers generally purchase debentures based on the trust that the bond issuer is unlikely to default on the compensation.
Hence A debenture is an unsecured bond.
A debenture is: a. an unsecured bond b. a bearer form bond c. a bond with...
17) Miller Farm Products is issuing a 15-year, unsecured bond. Based on this information, you know that this debt can be described as a: A) note. B) bearer form bond. C) debenture. D) registered form bond. E) call protected 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...
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...
A dividend is a form of cash flow for a? a. Secured Loan b. Bond c. Debenture d. Share of Common Stock
23) 23) The interest earned on both the initial rinnal and the interest reinvested from prior periods is called: A) dual interest B) free interest. C) interest on interest D) simple interest. E) compound interest. 24) 24) Which one of the following statements is correct? A) All stocks can be valued using the dividend discount models. B) Stocks can only be assigned one dividend growth rate. C) Preferred stocks generally have variable growth rates. D) Dividend growth rates must be...
23) 23) The interest earned on both the initial principal and the interest reinvested from prior periods is called: A) dual interest B) free interest C) interest on interest. D) simple interest. E) compound interest. 24) 24) Which one of the following statements is correct? A) All stocks can be valued using the dividend discount models. B) Stocks can only be assigned one dividend growth rate. C) Preferred stocks generally have variable growth rates. D) Dividend growth rates must be...
How does the following feature of a bond affect the required rate of return on the bond? Explain. a. Call provision b. Put provision c. Sinking fund
About Bond rating a. poor bond rating is caused by the low counpon rate and thus the YTM is low b. secured bonds should have better rating than unsecured bond of the same firm c. a bond without sinking fund should a better rating. d. a callable bond should have lower yield. e. a convertible bond should have higher yield than a non convertiable one.
Which type of bond - a mortgage bond, a debenture, or a subordinated debenture - generally has the a. Highest cost to the bond issuer? b. Least risk to the bond holder? c. Highest yield to the bond holder?
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...