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To have a bond is to loan money to the issuing corporation. Some risk may occur in having bonds. These are the Inflation risk, liquidity risk and the lower returns.
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What are the disadvantages of having bonds?
i have machine account and person account int he books
From the standpoint of the issuing company what are the Disadvantages of using bonds as a long term means of financing?
interest must be paid on a periodic basis regardless of earnings.
What are the advantages and disadvantages of sovereign bonds?
Sovereign bonds are bonds issued by national government. The advantages and disadvantages of sovereign bonds are stated as follows: Concerning the advantages: - In terms of the investors: + Firstly, one of the advantages of sovereign bonds is their very low risk. In many case, they are called risk- free bonds. Therefore, these bonds are suitable for investors who fear the volatility of certain investments and prefer a safe place to invest or in a market with instabilities. + Secondly, sovereign bonds are liquid. The truth is that they are bought and sold on the open market every day. + Thirdly, the tax benefit enjoyed by the investors is also an advantage of sovereign bonds. In fact, all income from them is taxable at the federal level, but not taxable at the state and local level. + Lastly, because sovereign bonds can often perform well even when other asset classes cannot, they may be a good diversifier for investors. - In terms of the government: + By issuing bonds, government can have a new cash flow to spend to obtain some certain objectives. Moreover, they can also resolve the current situation of budget deficit. Regarding the disadvantages: - In terms of the investors: + Firstly, the interest paid on sovereign bonds is low. It can be explained by the low risk of them. + Secondly, if interest rate or inflation increases, the value of the bonds can reduce because of the fixed interest paid by bonds ( except for the case of TIPS which has the outstanding principal is adjusted for inflation) + Lastly, sovereign bonds can be vulnerable in the case that the government issuing them now suffer a fiscal crisis, that makes people are unsure about whether debt obligations will be honored. - In terms of the government: + Because after issuing bonds, government have more money, which can lead to the fact that they will spend too much, even more than the necessary amount that should be spent. Moreover, when they issue too many bonds, they may suffer debt insolvency
Weak bonds and strong bonds?
stong bonds are ionic bonds and covalent bonds and weak bonds are van der waals bonds and hydrogen bonds.
What were the advantages of Treasury bearer bonds?
The advantage of bearer bonds was that could be transferred easily and with that said, they had to be kept safe from loss, destruction and theft. Institutional owners typically contracted with commercial banks for custodial services. Holders of bearer bonds, or their custodial agents, also had to clip and send in for collection the coupons on the bonds. This process was expensive for banks that had to clip and collect coupons from thousands of bonds. Depending on a varied number of circumstances, bearer bonds had both advantages and disadvantages as well.
When was Bonds on Bonds created?
Bonds on Bonds was created in 2006.
What types of bonds are there in atoms?
The types of bonds are corporate bonds, junk bonds ,treasury bonds and municipal bonds. There are saving bonds also.
What are the different types of chemical bonds?
Ionic bonds, Covalent bonds, Hydrogen bonds, Polar Covalent bonds, Non-Polar Covalent bonds, and Metallic bonds.
What is the duration of Bonds on Bonds?
The duration of Bonds on Bonds is 1800.0 seconds.
When did Bonds on Bonds end?
Bonds on Bonds ended on 2006-05-30.
What are the three diferentes types of side bonds?
Side bonds link two adjacent chains of atoms in a molecule. The three types of side bonds are hydrogen bonds, salt bonds and disulfide bonds.
What type of bonds can you buy?
corporate bonds, federal government bonds, municipal bonds, asset-backed bonds, mortgage-based bonds, and foreign government bonds. For each of these categories, there are variations.
