What are debenture bonds used for?

Q: What is Bond's interest income?

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

Q: What is investment-grade bond?

A: Bond is a financial instrument. Issuer issues bond to raise the fund and payback the amount at the…

Q: What is the purpose of a bond?

A: A bond is a debt instrument issued by governments and corporations to raise long-term funds. A bond…

Q: What are the key features of a bond?

A: A bond is a fixed income instrument. The bond holders are referred to as the debt holders or…

Q: Distinguish between a debt security and an equity security.

A: Debt Security:    Debt security refers to a financial instrument that is issued by the organization…

Q: Difference between regular bond and perpetuity bond?

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

Q: What is the difference between general obligation bonds and revenue bonds?

A: General Obligation Bonds(GOs) are bonds that are backed by the "full faith and credit" of the issuer…

Q: Bond issue costs

A: Bond issuance costs are costs associated with the issue of bonds.

Q: What is a bond indenture?

A: Bonds: Bonds are debts instruments issued by corporates. Bonds are issued at par, premium and…

Q: Define the  Bond Indenture.

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

Q: In what sense is a project’s IRR similar to the YTM on a bond?

A: IRR is the discount rate that forces an NPV of project equivalent to zero. Estimation of rate of…

Q: What purpose does the variety in bond features (types and characteristics

A: A bond is referred to as a fixed income instrument since bonds traditionally paid a fixed interest…

Q: What causes a gain or loss on the sale of a bond investment?

A:

Q: What is a bond sinking fund? What is the purpose of establishing a sinking fund? Are bonds that…

A: A bond sinking fund is the total amount of cash kept in a fund that will be used to retire a bond…

Q: what is the difference between bonds payable and accounts payable? explain your answer?

A: Bond payable and account payable both are liabilities of the company , which is to be paid in future…

Q: Explain accounting for investment in bonds.

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

Q: What are the two bond amortization methods mentioned in the book and how are they different?

A: There are two methods for amortization of bond discount or premium on bonds payable..... They are…

Q: What is new issue bond?

A: The bond is a fixed income financial instrument that is issued by the government or by the companies…

Q: What is a term bond?

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

Q: Compare and contrast two different types of bonds explaining their advantages and disadvantag

A: Bonds can be referred to as investment security issued by a large private organization or by the…

Q: What is a bond indenture? What provisions are usually included in it?

A: Bond indenture: Its a written legal document.

Q: What is a debenture bond?

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

Q: Explain Labor and Material Payment Bonds and Completion Bonds?

A: Bonds are defined as units of corporate debts which are issued by the companies & are…

Q: Why is the time Submittal bonds important?

A: A bid bond is a building bond form that covers the holder or developer during a contract. It is a…

Q: Define bond amortization.

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

Q: What is outstanding bond?

A: Bond: It can be defined as the loan given to a business or any other organization by the investor…

Q: What are the different types of Bonds?

A: A corporate bond is a type of debt security that is issued by a firm and sold to investors. The…

Q: Define Yankee bonds

A: Yankee Bonds:-(Defination) Yankee Bonds are issued by Foriegn Entity like foreign bank of Financial…

Q: What is a bond indenture? How does a superior bond differ from a subordinate bond?

A: Bonds are the financial debt instrument that are issued for raising funds at fixed interest rate for…

Q: How are bonds and notes the same? How do they differ?

A:

Q: What information is contained in a bond indenture? What purpose does it serve?

A:

Q: Explain Collateralized Debt Obligations (CDOs)?

A: A collateralized debt obligation (CDO) is a complex structured finance product that is backed by a…

Q: What is a sinking fund bond?

A:

Q: Summarize some specific bond terms?

A: A bond is nothing but a financial instrument that a company issues for raising capital. It is…

Q: What is income bond?

A: A financial instrument with a fixed cost that helps a company to raise funds for business operations…

Q: What is meant by issue of debentures as collateral Security?

A: Collateral is an asset or property that is given by a borrower to lender to secure the loan.…

Q: What is a securitized Bond?

A: When the outstanding bonds are pooled together to form a new category of product and then is traded…

Q: What is a bond indenture? What does it contain?

A:

Q: What are redeemable and irredeemable bonds? Explain in single sentence please

A: Redeemable bonds are the bonds which are redeemed after fixed no. of years.

Q: How do you compute Macaulay's duration on a bond?

A: FORMULA TO CALCULATE Macaulay's duration on a bond DMacaulay's=∑T=1NC×T1+rT+M×N1+rNpricewhere,C =…

Q: How do convertible bonds help reduce agencycosts?

A:

Q: Define Bonds.

A: Long term liabilities are the financial obligation, due would be settled after a minimum one year…

Q: which bond would be prefer?

A: Rational investor would prefer investment in which it would receive highest yield. The interest…

Q: What is the purpose of bond indenture?

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

Q: Discus factors affecting value of a bond

A: Bonds are financial instruments which provides fixed returns to its holders. Bonds actually have a…

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: What purpose does the variety in bond features (typesand characteristics) serve?

A: Bond: Bonds are long-term debt issued with the defined terms and conditions. Bonds are generally…