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WHAT is a feature that permits the issuer to repurchase bonds at a stated price prior to maturity?
Wiki User
∙ 10y ago
Call feature.
Wiki User
∙ 10y ago
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Is a feature that permits the issuer to repurchase bonds at a stated price prior to maturity?
Call feature.
What provision allows the issuer to redeem the bond before its maturity at a specified price?
Call Provision
What is a callable?
Callable is the designation of a bond that can be paid off earlier than its maturity date.
Why does maturity date change?
It changes when the issuer does not have the money to pay back the principal and wants to still give out coupon on the bonds.
Situations when a company can purchase its own shares?
It's called a "stock buyback." These are covered by SEC Rule 10b-18, which says: the issuer or affiliate must purchase all shares from a single broker or deal during a single day. issuers can't buy stock on the first trade of the day, or close to the end of it. issuers must repurchase at a price that doesn't exceed the highest independent bid or the last transaction price quoted. the issuer can't purchase more than 25 percent of the stock's average daily volume.
Is a feature that permits the issuer to repurchase bonds at a stated price prior to maturity?
Call feature.
What happens when a yield to maturity is less than the yield to call?
The issuer will call the bonds and issue new bonds to the maturity date.
What is the difference between a callable bond and a retractable bond?
A callable bond is where the issuer has the ability to redeem the bond prior to maturity. A callable bond is where the bond hold has the ability to force the issuer to redeem the bond before maturity. Hope this helps.
What provision allows the issuer to redeem the bond before its maturity at a specified price?
Call Provision
Which level of government is most likely to receive revenues from parking permits?
A city government is likely the issuer of parking permits for city streets, and would obtain the revenue.
What is a callable?
Callable is the designation of a bond that can be paid off earlier than its maturity date.
Why does maturity date change?
It changes when the issuer does not have the money to pay back the principal and wants to still give out coupon on the bonds.
1 Bonds that have an option exercisable by the issuer to retire them at a stated dollar amount prior to maturity are know as?
callable bonds
What is the theory behind requiring bond issuers to charge bond discounts to interest expense when the discount is amortized?
When a bond matures the issuer has to pay the investor the full face value of the bond. The bond will also have a stated interest rate. If an investor will only accept a rate of interest which is higher than the stated interest rate, the issuer will likely sell the bond for less than the present value of the face value of the bond. For example, If a $100,000 bond is issued with a $4,000 discount to meet the buyers desired return, the issuer will have to pay the investor the $96,000 ($100,000-$96,000) the issuer received plus the $4,000 discount upon maturity. Since the issuer has to pay out that $4,000, upon maturity, to secure $96,000 the $4,000 discount is recognized by the issuer as interest expense (over the life of the bond).
How do you cash in a zero coupon bond from 1984 with a maturity date of may 2009?
The bond has matured so if you're the owner of the bond you should have already received payment. If you haven't, contact the issuer to see if there's an error or the law firm that's handling that issuer's bankruptcy.
What is a debenture stock trust deed?
It is a formal legal document/contract that outlines the terms of the debenture issue between issuer and holders. States concerns to maturity date, interest rate, interest payment , protective provisions and any other terms & conditions between issuer & holders....
What is the definition of 'callable bond'?
A callable bond, also known as a redeemable bond, is a debt security that entitles the issuer of the bond to retain the rights to redeem it before the maturity date of the bond is reached.
