Discuss the characteristics of corporate bonds.

Q: Who Issues Bonds?

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

Q: Define the term trading debt investments.

A: Investment is an asset or an item purchased today in the hope that it will generate income in the…

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: 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: 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: What is the difference between a Corporate Stock and a Corporate Bond?

A: Corporate Stocks are represents as equity portion of the issuing corporation. Owners of Corporate…

Q: Define corporate bond

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

Q: Describe the issuer's rationale for using Convertible Bonds as a tool to raise funds.

A: Bonds are a form of loan or debt that is being issued by the organisation and on which regular…

Q: Define junk bonds and explain how junk bonds became an important factor in corporate bond market.

A: The corporation and government can raise finance by issuing bonds. The borrower i.e bond issuer is…

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: Define the term corporate bonds.

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

Q: The sale of bonds is also referred as: a. Public Finance b. Debt Finance c. Equity Finance d.…

A: The Bonds is a type of  a loan. When  a company, Government or muncipal corporation is in need of…

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: 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: Explain a corporate bond.

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

Q: What are the pros and cons of a company’s decision to issue stock versus issuing bonds?

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

Q: Write a detailed note on Corporate Bonds.

A: Bond is the debt instrument which is securitized as tradeable assets. It is kind of fixed income…

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 the relative benefits and drawbacks of selling bonds, common stock, and preferred stock…

A: The main objective of the company is to reduce the overall cost of issuing the capital. The Company…

Q: a. Explain what a corporate bond is b. Outline three characteristics of the bond market d. Explain…

A: Bonds are the liability of the company which they have to pay after the expiry of the bond’s…

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: Define the term debt securities.

A: Debt security refers to a debt instrument, such as a government bond, corporate bond, certificate of…

Q: How the bonds market operates?

A: Bond markets are categorized in to two primary market and secondary market. Primary market is the…

Q: Corporate bonds

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

Q: What is the difference between a corporate bond and a registered bond?

A: Introduction: Bonds are an example of a loan. It is similar to an IOU and so when you buy bonds, you…

Q: Contrast the differences/similarities of common stocks and bonds. How are they used in the corporate…

A: Common Stock: This security represents the ownership of a company. Common stock is also known as a…

Q: Explain the Debt Investments Classified as Trading Securities.

A: Debt:   A debt is an obligation that requires on entity called the debtor to pay back a borrowed sum…

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: Compare bond financing with stock financing

A: Bond financing   It is a type of long-term borrowing that state and local governments frequently…

Q: Explain the main difference between a bond and a common shares?

A: The bonds and common shares are the ways that are meant to generate cash from financing activities.

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: 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: When are corporations likely to call their bonds?

A: They are many types of Bond, Generally the Bonds are Paid at the time of Maturity to the Bond holder…

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: Describe the three methods used to ensure that funds are available to redeem corporate bonds at…

A: The three methods used to ensure that funds are available to redeem corporate bonds at maturity…

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 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: 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: 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…