33. A call provision in a bond agreement grants the issuer the right to: A. call...
33. A call provision in a bond agreement grants the issuer the
right to:
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A. call the bondholder to determine if he or she would like to extend the term of the bond agreement. |
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B. change the coupon rate provided the bondholders are notified in advance. |
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C. replace the bonds with equity securities. |
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D. repurchase the bonds prior to maturity at a pre-specified price. |
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E. buy back the bonds on the open market prior to maturity. Part 2 A note is:
|
Homework Answers
1. A call provision in a bond agreement grants the issuer the right to repurchase the bonds prior to maturity at a prespecified price
Option D is correct
Part 2
A note is unsecured debt that is generally payable within the next 10 years
Option B is correct
Add Answer to:
33. A call provision in a bond agreement grants the issuer the
right to:
A. call...
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...
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...
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...
True or False and why? 1. A call provision gives the issuer the right to all...
True or False and why? 1. A call provision gives the issuer the right to all the bonds for redemption. In general, companies call bonds if interest rates rise and do not call them if interest rates decline. 2. A zero coupon bond is a bond that pays no interest and is offered (and initially sells) at a discount. These bonds provide compensation to investors in the form of capital appreciation.
A(n) ____________ gives the issuer the right to redeem the bonds prior to maturity under specified...
A(n) ____________ gives the issuer the right to redeem the bonds prior to maturity under specified terms, Question 6 options: Early return clause Redemption provision Premature redemption Call provision
Please help this is for a grade! Thank you Fixed-income securities consist of debt instruments and...
Please help this is for a grade! Thank you
Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date. The entity that promises to make the interest and maturity payments for a bond issue is called the Based on the information given in the following statement, answer the questions that follow: In July 2009, Hungary successfully issued 1 billion euros...
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...
Back to Assigrumant Attempts: 2. Characteristics of bonds To be effective issuing and investing i...
Back to Assigrumant Attempts: 2. Characteristics of bonds To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is Average: 8 essential For example: . A bonds is generally $1,000 and represents the amount bonrowed 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...
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...
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...
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...
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...
Please help this is for a grade! Thank you
Fixed-income securities consist of debt instruments and preferred stock. Bonds are debt securities in which a borrower promises to pay a specified interest rate and principal at a future date. The entity that promises to make the interest and maturity payments for a bond issue is called the Based on the information given in the following statement, answer the questions that follow: In July 2009, Hungary successfully issued 1 billion euros...
Back to Assigrumant Attempts: 2. Characteristics of bonds To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is Average: 8 essential For example: . A bonds is generally $1,000 and represents the amount bonrowed 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...
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