If included within the bond's indenture, which of the following is an option that can be...

If included within the bond's indenture, which of the following is an option that can be exercised by the bond issuer?

	a.	convertible
	b.	callable
	c.	putable
	d.	sinking fund

Solutions

Expert Solution

Answer b: Callable

Here bond issuer has the right to specified buy the bond from the bond holder, whereas in puttable bond has bond holder right to give back to to the bond issuer a bond for one or specified date. In convertible bonds bond holder has right to exchange the bond for shares. Sinking fund is a fund that is kept aside from the revenue periodically to meet future capital expenses or pay off debts.

jeff jeffy answered 2 years ago

Next > < Previous

Related Solutions

Which of the following provisions of a bond indenture is designed to ease the burden of...

Which of the following provisions of a bond indenture is designed to ease the burden of principal repayment by spreading it out over several years? a. pay in kind feature b. sinking fund c. convertible feature d. callable feature

Discuss the bond covenants which are mentioned in bond indenture.

Which of the following statements is NOT CORRECT? a. When a bond's coupon interest rate is...

Which of the following statements is NOT CORRECT? a. When a bond's coupon interest rate is less than the market interest rate, the bond will sell at a value less than its par value and is known as a discount bond. b. Bonds are basically loans, so they usually make regular interest payments to the bondholders. The percentage of this interest payment relative to the bond's face value is called the coupon interest rate. c. For a fixed-rate bond, the...

Which of the following can cause mutation in humans? (you can select more than one option)...

Which of the following can cause mutation in humans? (you can select more than one option) A. ionizing radiation B. microwaves C. mutagenic chemicals D. transposable elements E. spider bites

Which of the following items are included on the balance sheet?

the balance sheet is a snapshot of the entity. Which of the following items are included on the balance sheet?A.assetsB.RevemuesC.expensesD.withdrawls

Which of the following transactions would not be included in GDP?

Which of the following transactions would not be included in GDP? A. Nancy mows her own lawn B. Gordon hires a painter to make a sign for his business. C. Ruth buys paint for her house. D. The Commonwealth of Massachusetts has snow removed on interstate highways.

Which of the following are included in GDP, and which are not? Write in paragraph form....

Which of the following are included in GDP, and which are not? Write in paragraph form. Provide examples and explain your answer. The rise in life expectancy over time Child care provided by a licensed day care center Child care provided by a grandmother The sale of a used car The sale of a new car The iron that goes into the steel that goes into a refrigerator bought by a consumer.

What is a bond? What payments can the bondholders expect? What is the bond indenture? What...

What is a bond? What payments can the bondholders expect? What is the bond indenture? What is the bond trustee?

Which of the following features of an option never changes over the life of the option?...

Which of the following features of an option never changes over the life of the option? Select one: a. The exercise price. b. The price of the underlying asset. c. The premium. d. The time to maturity.

Which of the following are included and which are excluded in calculating this year’s GDP? Explain...

Which of the following are included and which are excluded in calculating this year’s GDP? Explain in each instance. (a) A homeowner who mows her own lawn (b) A decline in the average hours worked per week (c) Business expenditures on pollution control equipment (d) Income from illegal drug activities (e) The person who purchases a health care product

Subjects