Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Indenture,”The bond contract between the[…]
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Bond covenants,”Found in the bond indenture.Two types:Affirmative: describes what the company pledges itself to do (i.e. pay taxes on time, maintain a minimum debt ratio, etc.).Negative: describes what the company pledges itself NOT to do (i.e. not sell off certain assets, not pay out large dividends
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Bond covenants,”Found in the bond[…]
Read moreCalculating bond values (financial calculator)
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Calculating bond values (financial calculator)[…]
Read moreYTM vs. Current Yield
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.YTM vs. Current Yield Current[…]
Read moreInverse price-yield relationship
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Inverse price-yield relationship The YTM[…]
Read moreTypes of Bonds,”Debentures: unsecured, high riskSubordinated Debentures: unsecured, high risk, lower claim to assetsMortgage Bonds: collateral, usually real estateZero Coupon Bonds: pay no coupon interest paymentsJunk Bonds: bonds with a rating of BB or belowEurobonds: payable in a currency not native to country of issueConvertible bonds: ability to convert into equity securities
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Types of Bonds,”Debentures: unsecured, high[…]
Read moreBond-Price Sensitivity,”If coupon rate = discount rate, bond will sell for par valueIf coupon rate > discount rate, bond will sell for a premiumIf coupon rate < discount rate
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Bond-Price Sensitivity,”If coupon rate =[…]
Read morePrices vs. Yields,”INVERSE RELATIONSHIP!If market interest rates increase, the price of existing bonds will fall.If market interest rates fall
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Prices vs. Yields,”INVERSE RELATIONSHIP!If market[…]
Read moreRelationship between Equity and Stock
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Relationship between Equity and Stock[…]
Read moreCommon Stock vs. Preferred Stock,”COMMON STOCK:Variable return security (dividends may increase/decrease at management’s discretion), investors become partners, investors have right to vote, has the lowest position in terms of payoutPREFERRED STOCK:hybrid security (resembles both equity and debt), payments are fixed, investors are non-voting and non-participating
Average Rating 0 out of 5 stars. 0 votes.You must log in to submit a review.Common Stock vs. Preferred Stock,”COMMON[…]
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