Question

In: Accounting

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

 

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

Solutions

Expert Solution

 

Step 1: Definition of bond

A bond is a type of long-term liability in which the company issues a bond to fulfill a large number of money needs.

Step 2: Bond call

When a company calls a bond, it means the company redeems its bond before the maturity date of the bonds. When a company call bond, it pays face value plus the accrued interest to the investor


 

A company called bond when there are chances that the interest rate will fall in the future.

Related Solutions

What does it mean when a bond is referred to as a convertible bond? Would a...
What does it mean when a bond is referred to as a convertible bond? Would a convertible bond be more or less attractive to a bond holder than a non-convertible bond?
What does Ruiz mean when she calls chaperonage "a manifestation of familial oligarchy"?
What does Ruiz mean when she calls chaperonage "a manifestation of familial oligarchy"?
Question 1: When using a multimeter, what does it mean when the meter is on its...
Question 1: When using a multimeter, what does it mean when the meter is on its “best setting”? Question 2: When using a multimeter, why is it important to always check the meter to make sure that you are making a measurement on its best setting? Does this procedure of a “Best Setting” also apply to measurements of voltage and current? Question 3: When using a multimeter, which settings are the best for each resistor? How many digits are displayed...
What does change in bond energy mean? I get that when a solid turns into a...
What does change in bond energy mean? I get that when a solid turns into a liquid that there is a change in bond energy, but what exactly does that mean? If the bond of a solid breaks and turns into a liquid will it have a change in bond energy? if the bond energy changes will it decrease or increse?
What does it mean when a question states explicit conjugancy between to systems how is this...
What does it mean when a question states explicit conjugancy between to systems how is this different than just finidng the conjugancy?
what does it mean when the offspring decreased?
what does it mean when the offspring decreased?
What does it mean when culture is commodified?
What does it mean when culture is commodified?What is the impact on intercultural communication?Explain and provide an example.
What does it mean when LSCs are quiescent?
What does it mean when LSCs are quiescent?
What does CGIAR mean? When was it founded?
What does CGIAR mean? When was it founded?
What does Piaget mean when he says development comes before development? What does Vygotsky mean when...
What does Piaget mean when he says development comes before development? What does Vygotsky mean when he says learning comes before development?
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT