When are corporations likely to call their bonds?

Q: What is a share? What is a bond? What is the difference between holding the share of a company…

A: Shares are the part of Equity of the company. Bonds are the part of liability for the company.

Q: The cash interest payment a corporation makes to its bondholders is based on

A: Bonds: Bonds are defined as debt instruments which are usually issued by the company that borrows to…

Q: What are the main advantages and disadvantages of            investing in bonds?

A: Bonds are debt instruments issued by an entity. The issuing entity can either be a corporate entity…

Q: Who Issues Bonds?

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

Q: What is the difference between financing a corporation with debt vs equity Provide an example of…

A: There are different sources of finance that a corporation can use for its business purpose when it…

Q: Distinguish between public and private corporate debt.

A: Debt is the amount of loan that is borrowed and it is repaid along with the interest.

Q: Define corporate bond

A: The corporate bonds are those types of bond issued by companies and generally mature with a time…

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: How do bonds provide financing to corporations for their capital projects? What are the key…

A: A bond is a good source of finance. Payment of coupon at a regular interval help in tax savings.

Q: Define the term corporate bonds.

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

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: How a company takes tax advantage of Bonds Payable (or any other fixed cost financing)?

A: Giving securities is one path for organizations to fund-raise. A bond capacities as a credit between…

Q: Write the differences between  treasury bill and corporate bond

A: Debt intrument: they are the tool an company or goverment can utilize for the purpose of obtaining…

Q: What are the advantages of holding stock in a company versus holding bonds issued by the same…

A: Stock is a security that represents the ownership of the fraction of a corporation. Bond is a debt…

Q: What does it mean when a company calls a bond?

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

Q: Explain a corporate bond.

A: A Bond refers to an instrument that represents the loan being made by the investor to the company…

Q: A corporation decides to sell its newly issued bonds to pension funds and insurance companies, what…

A: A corporate bond is a debt instrument that a company issues and sells to investors. The company…

Q: What are stock warrants and convertible debt? How do stock warrants work? How does convertible debt…

A: Stock warrant (SW) is a contract through which investors get rights to purchase the particular…

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: what are major categories of debt and stock for a corporation.

A: Several businesses and people employ debt to finance major purchases that they would not be able to…

Q: Corporate bonds that can be exchanged for shares of the corporation’s common stock ifcertain…

A: Corporate bond: It can be defined as a debt security, usually issued by the public or private…

Q: What are municipal bonds? What characteristics makes them especially attractive to high-income…

A: The state government issues municipal bonds. They can be thought of as a risk-free investment…

Q: How does the deductibility of interest and dividends by the paying corporation affect thechoice of…

A: A way to finance the capital requirement by the category of ownership in a company that has the last…

Q: What is the advantage of issuing bonds instead of obtaining financing from the company’s owners?

A:

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: Discuss the characteristics of corporate bonds.

A: Corporate bond-It is a bond issued by a company to fund its business operations, major expansions,…

Q: What are convertible bonds

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

Q: How any company is taking tax advantage of bonds payable or any other fixed cost financing?

A: Bond can be considered as an I.O.U between the lender and the borrower that contains details about…

Q: Corporate bonds

A: Advantages of Corporate Bonds One major draw of corporate bonds is their strong returns, compared to…

Q: What are the similarities and differences between mortgage securities and corporate bonds?

A: Introduction: Mortgage related security is a form of security in which investor collects payment…

Q: Which are the four major types of corporate bonds?

A: Types of Corporate bonds 1. Senior bonds Senior bonds give investors the first claim to a company’s…

Q: Why are government bonds considered safer to invest in as compared to corporate bonds?

A: A government bond is a government-issued financial asset that comprises US Treasury bonds and…

Q: What is the Yield To Maturity of Corporation A’s bond issue?

A: YTM is also called as yield to maturity. It is the expected rate to be earned by investor, by…

Q: True (t) or False (f) _____ Debt investments are investments in government and corporation bonds

A: Debt investments are investments in a company or firm by borrowing amount through the way of…

Q: State the types of corporate bonds.

A: Bonds are basically corporate debt units that are issued and securitized as the tradeable assets by…

Q: The legal document that spells out the rights of the bond holders and terms of a corporate bond is…

A: Solution:- When a company issues bond, it signs an agreement between the company and the bond…

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: What factors to be considered in choosing either bonds, preference shares or ordinary shares as the…

A: A company can raise capital by various means – by issuing bonds or by issuing preference shares or…

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…