North Inc. has two 5-year bonds. If the bonds have different _____, then their yields could be different. Collateral...

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Question

North Inc. has two 5-year bonds. If the bonds have different _____, then their yields could be different. Collateral...

North Inc. has two 5-year bonds. If the bonds have different _____, then their yields could be different.

Collateral
Seniority (Claim priority)
Bond rating
All of the above ***

business finance

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Answer 1

Answer #1

All of the above

All the above factors affect the yield of a bond. A senior bond will generally have a lower yield than a subordinated bonds. A higher bond rating will have a lower yield than a bond with lower credit rating. A debt with collateral will have a lower yield than a debt with no collateral.

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Answer 2

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North Inc. has two 5-year bonds. If the bonds have different _____, then their yields could be different. Collateral...

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Homework Answers

Add Answer to: North Inc. has two 5-year bonds. If the bonds have different _____, then their yields could be different. Collateral...

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North Inc. has two 5-year bonds. If the bonds have different _____, then their yields could be different. Collateral...