Why should an investor use debt?

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: Up to what extent can debt financing be useful to the company?

A: Debt financing means raising the capital for the company in the way of selling bonds, debentures,…

Q: When should debt security be classified as held-to-maturity?

A: Debt: A debt security should be classified as held to maturity only if the company has both the…

Q: Why consider bonds?

A: A bond can be described as the security or asset which provides secure income to the investor…

Q: Equity financing is the borrowed funds from outside sources like loans, bonds and mortgages. True or…

A: Corporate finance is referred as the decision of the firm to take capital investments and other…

Q: What are advantages of debt financing?

A: The advantage of debt financing: Ownership remains with the person itself as when the person agrees…

Q: What economic circumstances might encourage investors to use a bond's convertibility feature

A: This question outlines how current economic conditions may encourage investors to use a bond's…

Q: Why is the relevant cost of debt the interest rate on new debt, not that on alreadyoutstanding, or…

A: The pre-tax cost of debt for a company, rd, is the interest rate the company should settle on fresh…

Q: Explain the risks of holding debt and equity from the point of view of an investor.

A: Debt investments are generally fixed yielding instruments such as bonds, company deposits, etc.…

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

A:

Q: Under IFRS No. 9, what reporting categories are used to account for debt investments? What about for…

A: Equity investments: The financial instruments which claim ownership in the issuing company and pay a…

Q: Why bonds is an investment opportunity and its benefits to bondholder?

A: Bonds are safe investment for investors and it is form of debt provided by investors to companies.…

Q: What are the risks of debt securities?

A: Debt securities: Debt securities can be described as a type of debt instrument that is purchased and…

Q: What is one of the primary concerns of financial analysis regarding a firm's debt payments?

A: A firm's debt payment ability is one of the main concerns for the suppliers of the business, to the…

Q: Explain what a unsecured debt, subordinated debt, senior debt is?   -is there risk in buying an…

A: Debt is the obligation that requires one party, the debtor to pay money to another party, the…

Q: what reporting categories are used to account for debt investments?

A:

Q: If you are an investor will you choose to investment in bonds? Why?

A: Bond is a debt security.

Q: How are financial markets classified according to maturity of the claim?

A: In general, financial markets refer to any marketplace where securities are traded, such as the…

Q: Will you choose to invest in bonds if you are an investor? Why?

A: A bond is a long-term investment instrument that requires a corporation to return the amount of the…

Q: What is the meaning of FINANCING in the financial market?

A: Financial market is a marketplace where trading of securities takes place. Securities include bonds,…

Q: When is debt financing more attractive than equity financing?

A: Debt refers to the amount borrowed by one party from another party, This arrangement of borrowing…

Q: When is a gain recognized in a debt restructuring?

A: Debt restructuring is a process which the companies are using to avoid the risk of default on…

Q: What are the advantages and disadvantages of debt financing? Of equity finacing?

A: Financing is a process of providing funds for business activities, making purchases, and investing.…

Q: Explain Collateralized Debt Obligations (CDOs)?

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

Q: investments in equity instruments

A: Investment in Equity instrument are financial assets because... Explanation given below.

Q: What are the different factors that affect the interest rates set by issuers of debt securities?

A: Debt securities seem to be financial assets which guarantee their holders interest payments in the…

Q: What’s the difference between simple interest and add-on interest as bankers usethese terms?

A: Add on interest is calculated by totaling the principal borrowed and interest and then multiplying…

Q: Give some examples of debt financing?

A: Following are some examples of debt financing: Whereas, Debentures are a corporate or government…

Q: What are the benefits of using debt security?

A: The financial instruments which are bought by investors, or corporations, or mutual funds, are…

Q: Describe reasons for invest in debt or equity securities.

A: Securities: These are the financial assets that are traded in the financial or secondary or…

Q: What is your introspection on how Equity & Debt Financing impacts one's view?

A: Debt Financing :Debt financing involves borrowing funds from investors by issuing corporate…

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: What are some differences between debt-with-warrant financing and convertible debt?

A: Following are the differences between debt-with-warrant financing and convertible debt: In basic…

Q: trading

A: Ans. Debt investments include government, corporate and municipal bonds and includes real estate…

Q: Debt crisis  and solutions?

A: To run the business, corporations have to borrow the funds which will be repaid later with…

Q: t are the advantages and disadvantages of buying bonds directly?

A: A bond is a fixed-income instrument that represents an investor's loan to a borrower (typically…

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: What is informal debt restructuring?

A: Debt restructuring is a method wherein a company or an entity experiencing financial distress and…

Q: What are the main distinctions between a traditional financialinstrument and a derivative financial…

A: