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Q: What disadvantage do bonds present for an issuer?
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Why issue convertible bonds?

Generally, convertible bonds come at a lower cost to the issuer.


What is revenue bonds?

The bond which are obligated to get paid their principal and interest from issuer or its project through the revenue collection are known as "Revenue Bonds". Usually, issuer issues bonds for certain "project" and he requires capital investment hence he issues revenue bonds and the issuer pays back the interest and principal of the bonds through the receipt of the project i.e; through the revenue earned by the project.


What is a revenue bond?

The bond which are obligated to get paid their principal and interest from issuer or its project through the revenue collection are known as "Revenue Bonds". Usually, issuer issues bonds for certain "project" and he requires capital investment hence he issues revenue bonds and the issuer pays back the interest and principal of the bonds through the receipt of the project i.e; through the revenue earned by the project.


Why buys bonds and not stocks?

Bonds and stocks serve different purposes to the investor, and ideally you should buy both. Advantage of investment-grade bonds: the issuer is committed to paying you a stated amount of money on a stated date. The disadvantage is your return is limited to the agreed-on amount. Advantage of stocks: potentially unlimited return on your investment. The disadvantage is there are no guaranteed returns with stocks; you could potentially lose everything you invested in them. Speculative-grade bonds, or "junk bonds," have a risk/reward system more like stocks than investment-grade 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 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.


When is a bonds value generally repaid?

A bond is a type of a debt security, the approved issuer owes the holders a debt. The repayment period is often an agreement between the issuer and the holder.


When is a bonds par value repaid?

A bond is a type of a debt security, the approved issuer owes the holders a debt. The repayment period is often an agreement between the issuer and the holder.


Is a feature that permits the issuer to repurchase bonds at a stated price prior to maturity?

Call feature.


WHAT is a feature that permits the issuer to repurchase bonds at a stated price prior to maturity?

Call feature.


The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the?

bond indenture


Can you buy a bond after it has been sold out on the primary market?

Bonds are traded both in the primary market, which is the initial sale of the bonds, and in the secondary market, which is the sale of bonds subsequent to the initial sale by the issuer or underwriter.