Question

In: Accounting

What's difference between "Retire bond", "Redemption of bond", and "Call bond".

What's difference between "Retire bond", "Redemption of bond", and "Call bond".

Solutions

Expert Solution

RETIRE BOND

Retire bond is a accounting term which is used for the buyback of bonds. When a company decides to repay the dept represented by the bonds ( which were previously sold to general public), the bond is called retire bond.

REDEMPTION OF BOND

When a company decides to return investor's principal amount in bond, it is called redemption of bond. The same happens after completion of a maturity period or calling the bond for redemption. The bond can be redeemed at par, at premium or at discount. (Redemption at discount is not generally followed in market.)

CALL BOND

When a company reserves the right to call bond for redemption before it's maturity, this bond is called call bond.

Normally these bonds have higher coupon rate in comparison to normal bonds.

CONCLUSION

In simple words-

Retire bond is buyback of bond.

Redemption of bond is returning of Investor's capital after maturity of bond.

Call bond is redemption of bond on issuer's call before bond's maturity.

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

what's the difference between management and administration
what's the difference between management and administration
What's the difference between Fourier Holograms and Fresnel Holograms?
What's the difference between Fourier Holograms and Fresnel Holograms?
What's the difference between direct and indirect marketing channels?
What's the difference between direct and indirect marketing channels?
Explain the difference between a call option and a put option. Explain the difference between an...
Explain the difference between a call option and a put option. Explain the difference between an American option and European option. Find the value of a call option using the binomial option pricing formula for single period when given the following information: you have an option with 6 months until expiration, the payoff in the up scenario is $12, and the payoff in the down scenario is $0, the risk-free rate is 5%, the weight for the up scenario is...
What's the difference between direct and indirect measurements? and which is better
What's the difference between direct and indirect measurements? and which is better
Police response time to an emergency call is the difference between the time the call is...
Police response time to an emergency call is the difference between the time the call is first received by the dispatcher and the time a patrol car radios that it has arrived at the scene. Over a long period of time, it has been determined that the police response time has a normal distribution with a mean of 8.8 minutes and a standard deviation of 1.9 minutes. For a randomly received emergency call, find the following probabilities. (Round your answers...
Police response time to an emergency call is the difference between the time the call is...
Police response time to an emergency call is the difference between the time the call is first received by the dispatcher and the time a patrol car radios that it has arrived at the scene. Over a long period of time, it has been determined that the police response time has a normal distribution with a mean of 11.6 minutes and a standard deviation of 2.3 minutes. For a randomly received emergency call, find the following probabilities. (Round your answers...
Police response time to an emergency call is the difference between the time the call is...
Police response time to an emergency call is the difference between the time the call is first received by the dispatcher and the time a patrol car radios that it has arrived at the scene. Over a long period of time, it has been determined that the police response time has a normal distribution with a mean of 10.0 minutes and a standard deviation of 1.5 minutes. For a randomly received emergency call, find the following probabilities. (Round your answers...
Police response time to an emergency call is the difference between the time the call is...
Police response time to an emergency call is the difference between the time the call is first received by the dispatcher and the time a patrol car radios that it has arrived at the scene. Over a long period of time, it has been determined that the police response time has a normal distribution with a mean of 6.4 minutes and a standard deviation of 1.7 minutes. For a randomly received emergency call, find the following probabilities. (Round your answers...
Police response time to an emergency call is the difference between the time the call is...
Police response time to an emergency call is the difference between the time the call is first received by the dispatcher and the time a patrol car radios that it has arrived at the scene. Over a long period of time, it has been determined that the police response time has a normal distribution with a mean of 6.8 minutes and a standard deviation of 1.9 minutes. For a randomly received emergency call, find the following probabilities. (Round your answers...
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT