Give brief definitions of the following terms: (1) call provision; (2) secured debt; (3) yield to...

Give brief definitions of the following terms: (1) call provision; (2) secured debt; (3) yield to maturity; (4) convertible provision

Solutions

Expert Solution

call provision : A call provision is a provision on a bond or any fixed income security that give rights to the issuer to repurchase or retire the bond. It is clause in a debt instrument which allows its issuer to redeem it before its maturity date, usually on one or more call dates specified in its indenture.

Secured Debt: Secured debt is debt backed or secured by collateral to reduce the risk associated with lending, such as a mortgage. Collateral is an asset used to secure a loan; it is something that the lender can take if the borrower defaults.

Yield to maturity: Yield to maturity is the total return anticipated on a bond if the bond is held until it matures. It is the discount rate at which the sum of all future cash flows from the bond (coupons and principal) is equal to the current price of the bond.

convertible provision: A convertible is provision in a bond that can be converted into a predetermined amount of the underlying company's equity at certain times during the bond's life, usually at the discretion of the bondholder.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Give a brief definition of the following terms (a

Write the definitions of the following terms. Give examples of animals to which these terms apply....

Write the definitions of the following terms. Give examples of animals to which these terms apply. Antennae Appendage Jointed appendage Arm Asymmetrical Bilateral symmetry Radial symmetry Endoskeleton Exoskeleton Bone Chitin Leg Pentamerous Segmented body Tentacle

1. Define and explain the following terms(in own words): Secured versus unsecured debt: Senior versus subordinated...

1. Define and explain the following terms(in own words): Secured versus unsecured debt: Senior versus subordinated debt: 2. Compare 30-year bond to a 5-year bond all else equal. Which one is more sensitive to interest rate changes. Why? Please explain.

a) Define and explain the following terms: Secured versus unsecured debt Senior versus subordinated debt b) Compare...

a) Define and explain the following terms: Secured versus unsecured debt Senior versus subordinated debt b) Compare 30-year bond to a 5-year bond all else equal. Which one is more sensitive to interest rate changes. Why? Please explain.

Which would carry a higher yield to maturity: A bond with a call provision, or one...

Which would carry a higher yield to maturity: A bond with a call provision, or one without? A bond with a put provision or one without? A bond convertible into common stock, or one that is not? Besides being just a "plain vanilla" bond, what is similar about these? What is the difference?

Give a brief example of the option ( Bear Call Spread ) ?

Discuss the following terms giving their definitions and clarifying the definitions by giving suitable examples. 1-subset...

Discuss the following terms giving their definitions and clarifying the definitions by giving suitable examples. 1-subset 2-proper subset 3-improper subset 4-emtpy set 5-power set can you please write the question using the keypoard to be able to copy and paste the answer not picture . Thanks

Matching the following terms with their definitions. - A. B....

Matching the following terms with their definitions. - A. B. C. D. E. F. G. H. I. centromere - A. B. C. D. E. F. G. H. I. crossing over - A. ...

(1) Explain the difference between debt and equity capital (2) Give 3 examples each of debt...

(1) Explain the difference between debt and equity capital (2) Give 3 examples each of debt security or capital, hybrid security or capital, and equity security or capital. (3) What are the benefits of using debt capital? (4) What are the costs of using debt capital? (5) Identify six theories of capital structure and provide brief explanation

Provide brief definitions for the following: a) conjugation; b) polymer, c) HOMO and LUMO. 2) Why...

Provide brief definitions for the following: a) conjugation; b) polymer, c) HOMO and LUMO. 2) Why do conjugated compounds absorb light in the Ultraviolet region? Why do more conjugated compounds absorb at higher wavelengths/lower energies? What is required for organic compounds to absorb in the Visible light region?

Subjects