Q: Why might a company choose to raise money through bonds, rather than take out a note payable or…
A: Bonds are the long-term liability of the company where the company raises the money in lieu of…
Q: 2. Bond A and Bond B have identical characteristics except that Bond A has a higher interest rate.…
A: A bond is a kind of debt financial instrument that is being issued by both corporations and the…
Q: 6. Which is not considered as a debt security issued by private entities? a. Straight bonds b.…
A: A straight bond is something which is issued to the investor who gets interest on a regular interest…
Q: Which type of bond has interest payments that are exempt from federal income taxes?
A: Following are the bonds that are taxed: Certificates of deposit Corporate bonds Treasury…
Q: What ratings comprise investment-grade bonds and what ratings are used for junk bonds?
A: “Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: Who issues Bonds? Why should you own Bonds? What are the risks of owning Bonds?
A: Bonds are the debt instrument issued to the bondholders of the organisation.
Q: If the municipal bond rate is 6% and the corporate bond rate is 7%, what is the marginal tax rate,…
A: Bonds: Bonds are the liabilities of the company which is issued to raise the funds required to…
Q: In which market environment does the issuance of a callable bond make more sense from a corporate…
A: A bond is a debt security that is sold by a business entity to borrow long-term funds. Generally,…
Q: If a new competitor with scale enters, does that increase, decrease, or have no effect on the credit…
A: solution concept credit spread The term Credit spread is widely used while assessing…
Q: Compare and contrast corporate bonds with Government bonds.
A: Bonds refer to the investment securities in which the money is lent by an investor to the company…
Q: When CDS spreads on the company widen, does that increase, decrease, or have no effect on the credit…
A: Answer are as follows.
Q: Which of the following bond is the safest? Treasury Bonds Corporate Bonds Savings Bonds
A: Bonds are a form of liability for the business, for which regular interest payments along with value…
Q: Series EE bonds are: Question 5 options: corporate bonds that produce income that is taxed the…
A: The Series EE Bond is commonly called a "Patriot Bond". EE Bond is considered a non-marketable,…
Q: Why do most municipal bonds pay lower interest than riskless Treasury bonds?
A: Municipal as well as Treasury bonds are backed by the government and therefore are less risky. The…
Q: Does a steady low-volatility environment, increase, decrease, or have no effect on the credit spread…
A: answer are as follows.
Q: 1) (20) Why do corporations issue bonds instead of common stock? What issues do corporations need…
A: Bonds are debt instruments while common stock is an equity instrument.
Q: Bond Valuation Theory Question 2 Securities issued by Corporations are classified as either debt or…
A: Introduction: Debt: Borrowing money for running the company called as Debt. Debt is a liability to…
Q: 9. Which of the following is least likely to be a debt security? a. Government bonds b. Convertible…
A: Bonds and debts are the debt securities that are issued by the company in order to raise finance for…
Q: A bond tends to pay a high interest rate if it isa. a short-term bond rather than a long-term…
A: Bonds are the financial instruments that are issued by various financial institutions for fixed time…
Q: When inflation increases, does that increase, decrease, or have no effect on the credit spread for a…
A: A credit spread is the difference in yield of a US Treasury security and the yield on a corporate…
Q: Does a steady low-volatilty enviroment, increase, decrease, or have no effect on the credit spread…
A: If we closely observe we can find out that there are number of participants in a financial market.…
Q: Are government bonds ALWAYS less risky than corporate bonds? If yes, please explain. If no, please…
A: Government bonds are secured by government while corporate bonds are backed by corporate.
Q: 3. Which is not considered as a debt security issued by private entities? a. Straight bonds b.…
A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…
Q: If CDS spreads widen, does that increase, decrease, or have no effect on the credit spread of a…
A:
Q: Which type of bond has interest payments that are exempt from federal income taxes? A. Corporate…
A: A bond is a fixed income instrument. The bond holders are referred to as the debt-holders or…
Q: Which of the following is a disadvantage to a corporation issuing bonds? Group of answer choices…
A: Disadvantages of issuing a bonds; (1) Since bonds are an increase in debt, they might adversely…
Q: Explain why corporate bonds always yield more than Treasury bonds and whyBBB-rated bonds always…
A: Bonds are financial instruments that provide fixed returns to its holders. Bonds actually have a…
Q: when are corporations likely they called the Bonds? A. When the market interest rate is higher than…
A: The bonds are the financial instruments issued to raise money from the market.
Q: 5. If bonds issued by a corporation are sold at a discount, is the market rate of interest greater…
A: The corporation can issue the bond at discounts or premiums as per the market conditions and…
Q: Which of the following statement is true? Interest rates on Municipal bonds are on average…
A: Municipal Bonds are bonds issued by municipal corporations or by states in the USA for financing…
Q: he rate of interest actually earned by bondholders is called the a. stated rate. b. coupon rate. c.…
A: Solution: There are two rate relevant for bondholders. One is coupon rate that they receive…
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: What is a bond?
A: Hey, since there are multiple questions posted, we will answer first question. If you want any…
Q: 56: Why is it that interest instalments on government bonds are excluded as pay at present acquired,…
A: The question is based on the concept of interest payments from the treasury bond. The interest…
Q: d. Double taxation along with government regulation are advantages of the corporate form of…
A: The answer is stated below:
Q: Briefly describe the differences between inflation and Deflation. Briefly describe what Municipal…
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: 8. Which is least likely true about bonds? a. It is a financial security. b. The issuer has the…
A: Bonds are the debt obligations of a business on which it requires to pay regular interest to the…
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…
6. What do municipal bonds typically have a lower interest rate than corporate bonds?
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- 1. Should financial institutions invest in junk bonds? 2. Explain the use of call provisions on bonds. How can a call provision affect the price of the bond?3. What are protective covenants? Are they needed? Explain why.2. Bond A and Bond B have identical characteristics except that Bond A has a higher interest rate. Which bond has a higher credit risk? 3. Bond A and Bond B are identical except Bond B has a longer term. Therefore, we expect Bond _____ to pay a higher rate of interest. 4.Bonds issued by state and local governments are called _____ bonds. Bonds issued by financially shaky corporations are called _____ bonds. Of these two, which type of bond usually pays a relatively higher interest rate?1. When CDS spreads on the company widen, does that increase, decrease, or have no effect on the credit spread for a corporate bond?
- 3. Who issues Bonds? Why should you own Bonds? What are the risks of owning Bonds?1. 2. What is meant by bond issue cost and how do we account for such bond? 3. How do we account for compound financial instruments? 4. What is the difference between convertible bonds and bonds with warrants? 5. What is the difference between the accounting for retirement of ordinary bonds and compound financial instruments?2 How is the interest paid to bondholders affected by the issuance of a bond at a discount or premium? Is interest paid on the face of the bond or the issue price?
- 1) What ratings comprise investment-grade bonds and what ratings are used for junk bonds? 2) Are interest rates of junk bonds always higher or lower than investment-grade bonds? Why? 3) Why are investment-grade bonds more marketable and why are junk bonds issued at all?1.How do term bonds differ from serial bonds? Which type of bonds have governments been more likely to issue in recent years? Why do you think this trend has occurred? 2. Under what circumstances might a government consider an advance refunding of general obligation bonds outstanding? provide any sourceBriefly describe the differences between inflation and Deflation. Briefly describe what Municipal Bonds are as compared to General Obligation Bonds.