what is difference between a bond and a term loan? what are the advantages of a term loan over a bond?

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: How are bonds amortized?

A: Bond Amortization: Over the course of the bond's existence, the principal (face value) of the loan…

Q: In general, how is the rate on a floating-rate bond determined?

A: The bond that changes in interest entirety in line with market interest rates or a few other…

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 face rate and market rate, and which rate would be higher if a bond…

A: There are many types of financial instruments issued to raise funds.

Q: How does the payment of a bank loan’s principal and a bond’s par value differ?

A: A bank loan is a common method and process for a business to acquire money and capital for various…

Q: What does it mean that the bonds are “first mortgage” bonds? What effect does that have on…

A:

Q: What effect does collateral have on a bond's interest rate? What effect does subordination have on a…

A: There are various factors that impact a bond's price. We discount back the future cash flows of a…

Q: Will the amortization of Discount on Bonds Payableincrease or decrease Bond Interest Expense?…

A: There will be an increase in the interest expense due to the amortization of discount on bonds…

Q: What are the contract rate and the market rate for bonds?

A:

Q: Why is the discount and premium on bond issues amortized?

A: The bonds can be issued at premium or discount on the basis of market rate of similar bonds.

Q: Why is a call provision advantageous to a bond issuer?

A: Bonds: A bond, also recognized as a static-income security, is a debt instrument shaped for the…

Q: What is a bond payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: What exactly is a bond's "call" feature? What impact does the call feature have on bond premium or…

A: This question explains about a bond's "call" feature the call feature have on bond premium or…

Q: How does the carrying value of a bond gets amortized when selling it at discount?

A: The carrying value of bond represents the amount of Bond Face Value + unamortized premium (or )–…

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 the difference between the stated interest rate andthe market interest rate on a bond?

A: Interest: It can be defined as the cost that is paid by the borrower for using the money borrowed…

Q: What is the market rate on a bond?

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

Q: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: what is the principal amount repaid at the maturity of a bond is called?

A: Bond is a debt instrument which is issued by corporates or governments to raise funds for any…

Q: What amount of interest is expensed on a bond interest payment?

A: Whenever an interest payment is made on bonds, amount of interest expensed : Interest expensed =…

Q: From Service Leader's perspective, why are the bonds callable? What does that mean?

A: A callable bond is a kind of bond which allows the issuer to redeem the bond before it reaches its…

Q: What is return formula for bond?

A: Solution-      Bonds-                  A bond is a fixed financial gain instrument that represents a…

Q: What is a discount bond? A premium bond?

A: Bond: Bond is a kind of debt instrument typically issued by corporations, government organizations…

Q: What are bonds classified as?

A: Issue of bonds is a source of funds of a company. They are an acknowledgement of debt taken by the…

Q: Why is it necessary to amortize the discount and premium on bond issues?

A: Introduction:   Bonds may be sold at a discount, at a premium, or at face value.

Q: What effect does collateral have on the interest rate paid on a bond? Subordination also has an…

A: Many variables influence the interest rate on a bond, including collateral, subordination, and so…

Q: What does it mean to amortize a bond premium or discount? Why is it necessary?

A: Introduction: A bond is a contract between the bond lender and the bondholders. The two most common…

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

A:

Q: What are the similarities and difference between bonds and notes?

A: Notes payable: Notes payable is a written promise to pay a certain amount on a future date, with…

Q: What is the relationship between bond price and interest rate? Describe in fully how this…

A: Bonds are referred to as those investment securities which are issued by companies as units of…

Q: How does accrued interest on a bond affect the purchase price?

A: Interest on bond is normally paid semi annually. When a bond is transferred in between these…

Q: Will the amortization of Discount on Bonds Payable result in a higher or lower Bond Interest…

A: Introduction: The amortization of discounts on bonds payable will increase interest costs. When…

Q: what is the difference between a debenture and a mortgage bond?

A: Bonds and debentures both are the fixed interest providing debt instruments issued by companies and…

Q: What steps would you take to purchase a bond and how would you secure a return?

A: Bonds are corporate debt units that are issued by firms and collateralized debt obligations as…

Q: What are the two ways that discount and premium on bonds due are amortized? Each one should be…

A: Solution Two ways that discount and premiums on bond are amortized are as flows Straight line method…

Q: What is the difference between a mortgage and amortgage-backed security?

A: Meaning of Mortgage Mortgage defines a loan against an asset or valuable object. Under Mortgage the…

Q: The two main factors that determine the market interest rate on a loan or bond are: Length of time…

A: Market interest rate is the interest rate offered on a financial instrument in the financial market,…

Q: What is the difference between callable and putable bonds?

A: Bonds are debt instruments issued by a company that borrows from its lenders. They are issued at a…

Q: What is the effective-interest amortization mechanism for a bond discount or premium?

A: Method of interest amortization that is effective: Interest expenditure is calculated as follows:…

Q: What is mortgage bond?

A: A mortgage bond is secured by a mortgage, or a pool of mortgages, that are generally backed by…

Q: What are the methods of determining interest on bonds?

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

Q: Are the over-collateralizationa requirements for mortgage pay-through bonds the same as for…

A: Over collateralization implies that contract pools are larger noteworthy than the number of…

Q: What is the difference between a mortgage bond and a convertible bond?

A: Mortgage bond: A mortgage bond (also known as a secured bond) is a corporate bond that is secured by…