Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a company. Bonds require payment of periodic interest.

Q: In terms of public offerings of bonds, what is an indenture? A) a list of the duties of a trust…

A: Bond: It acts between any investor and a company like a loan.

Q: The sale of bonds is also referred a. Equity Finance b. Private Finance c. Debt Finance d.…

A: A firm can raise finance in two ways. They are referred to as debt finance and equity finance.

Q: Which of the following are differences between a bond and a common​ stock? ​(Select all that​…

A: Debt markets are markets where you contribute within the institutions or trade substances by the…

Q: Bonds that pay no interest unless the issuing company is profitable are called Select one: O a.…

A: Wrong answer    B) Collateral trust bond: Collateral means additional security. Thus in collateral…

Q: The purpose of a discount price for bonds is to: Select one: a. Increase profits b. Compensate the…

A: solution Concept The bond is issued at discount when                 -the coupon rate is less than…

Q: How can we determine the amount of debt financing through bonds?

A: When the firm raises funds through the sale of its long-term or short-term debt instruments then…

Q: The largest type of municple bonds outstanding is: A. revenue bonds. B. Industrial development…

A: Municipal Bonds:Municipal bonds are those bonds which are issued by local or state government of a…

Q: When a company redeems bonds at a premium to carrying value, that activity is usually classified as:…

A: The company issued the bonds to raise funds in the company so that that funds can be utilized in the…

Q: For a corporation, what are theadvantages of corporate bondsover long-term loans?

A: Bonds are a type of debt which is issued by the company  or the government. It is long term debt on…

Q: In general, If you consider investing a bond, how is the issuer and guarantor information relevant…

A: Investors have different options to make investments, and the motive behind investments is to…

Q: Which of the following has the highest interest rate? Select one: O a. Corporate Bond b. Government…

A: Note: Since you have asked multiple questions, we will solve the first question for you. If you want…

Q: The sale of bonds is also referred as: a. Public Finance b. Debt Finance c. Equity Finance d.…

A: The Bonds is a type of  a loan. When  a company, Government or muncipal corporation is in need of…

Q: Bonds which permit the bondholder to convert the bonds into shares of stock are called: Select one:…

A: AS THE NAME SUGGESTS , THE CONVERTIBLE BONDS ALLOW THE OWNER THE OPTION TO CONVERT BONDS INTO A…

Q: Explain accounting for investment in bonds.

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: When a company exercises its call provision on bonds, the company pays the book value of the bonds…

A: Call provision on the bond is the option held by the issuer for redeeming back the bonds if in case…

Q: Explain what a corporate bond is b. Outline the characteristics of the bond market d. Explain the…

A: A company can raise capital and secure financing through different mediums of debt and equity.…

Q: Discuss the effect if a company’s bond is downgraded.

A: Downgraded Bond: Credit rating agency are downgrading rating ofthe company's bond when their is risk…

Q: Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a…

A: Bonds payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: describe and contrast the characteristics and attributes of each of the following bond types:…

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…

Q: Investments in debt securities include all of the following, except for a. U.S. treasury…

A: The following are the types of debt instruments, US treasury Securities Corporate Bonds Commercial…

Q: Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a…

A:

Q: The journal entry a company makes for the payment of interest, interest expense, and amortization of…

A: Journal entries are passed following the golden rules of accounting. Debit all assets and expenses…

Q: a. Explain what a corporate bond is b. Outline three characteristics of the bond market d. Explain…

A: Bonds are the liability of the company which they have to pay after the expiry of the bond’s…

Q: On a balance sheet, what valuation must be reported for short-term debt investments in trading…

A: Short term debt investments are those debt funds or mutual funds that are obtained for a short…

Q: Explain callable and putable bonds in detail. Why are they important to issuing firms or investors?

A: Callable bond: The bond having the privilege to redeem by the issuer before maturity.   Puttable…

Q: What factors determine a company’s bond rating?

A: The rates which are assigned by the bond’s rating agencies to indicate the bond’s credit quality is…

Q: A corporate bond is a long-term debt instrument indicating that a corporation has borrowed a certain…

A: Long-term debt refers to debt obligations with a maturity of more than one year. Long-term debt is a…

Q: The cash interest payment a corporation makes to its bondholders is based on ________.A. the market…

A: Bondholders is the amount of liability or obligation in form of bonds or debentures of the company.…

Q: What is the difference between a corporate bond and a registered bond?

A: Introduction: Bonds are an example of a loan. It is similar to an IOU and so when you buy bonds, you…

Q: The journal entry a company records for the payment of interest, interest expense, and amortization…

A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in…

Q: Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a…

A: Definition: Bonds are a kind of interest-bearing notes payable, usually issued by companies,…

Q: :A dicount on bonds payable .Occurs when a corporation issues bonds with a stated rate more than the…

A: A discount on bonds payable is a contra liability account which represents unamortized discount on…

Q: What is the difference between annuities and corporate bonds?

A: An annuity is a lump sum or a series of payments paid to someone on a periodic basis. In other…

Q: Which of the following statements concerning bonds is FALSE? A. Bonds can be issued either at par,…

A: Bonds are issued by the corporates as measure to raise funds for the business. unlike shareholders…

Q: Which of the following is not a primary source of corporate debt financing? a. Bonds. b. Notes. c.…

A:

Q: What is a bond?

A: Hey, since there are multiple questions posted, we will answer first question. If you want any…

Q: Identify the following as either an advantage (A) or a disadvantage (D) of bond financing for a…

A: Definition: Long-term debt: Long-term debt refers to the obligations of a firm that are due and has…

Q: Explain any four of the following types of bond issues: Secured bonds. Term bonds.…

A: Bonds are a type of financial instrument acknowledging the debt of a company, institution or…

Q: Are bonds considered as fixed income securities?

A: Bonds are a type of loan taken by the borrower that promises to pay a certain sum as an interest to…

Q: Which of the following is correct?   A. Bonds maturing at a specified single date are called…

A: Bonds are fixed income earning instruments where the investor lends money to the company in exchange…

Q: (a) From what sources might a corporation obtain fundsthrough long-term debt? (b) What is a bond…

A: (a)A corporation might obtain funds through long-term debt through the following sources: 1. Bonds…

Q: Describe corporate bonds and explain the taxadvantage of debt financing.

A: A corporate bond is a financial instrument issued by a corporation in order to raise funds for the…

Q: Explain the difference between subordinated debenture versus senior debt and also explain which one…

A: A debt is a sum of money lent by another group.

Q: If bonds issued by a corporation are sold at a discount, is the market rate of interest greater or…

A: Identify the market rate of interest.The market rate of interest of bonds is greater than the…