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Why do bonds from the same issuer have different coupons if they have different times to maturity?
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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.
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.
How long does it take for bonds to reach full maturity?
Different bonds have different maturity dates. Additionally, there are different type of bonds, some provide interest based on the face value, and some provide the face value upon maturity.
Why issue convertible bonds?
Generally, convertible bonds come at a lower cost to the issuer.
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.
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
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.
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.
What one of these is not usually associated with bonds a coupon rate b maturity value c face amount d maturity rate?
Coupons, face amount, maturity value and maturity rate all are associated with bonds. Coupons are a type of bond and the face amount tells how much the coupon is worth until it matures, gaining interest.
How long does it take for bonds to reach full maturity?
Different bonds have different maturity dates. Additionally, there are different type of bonds, some provide interest based on the face value, and some provide the face value upon maturity.
List the key factors that influence the price on bonds in the secondary market?
Supply and demand,Expectations about interest rates and inflation,The bonds face value,The maturity date,The number of coupons remaining to be paid out before maturity.
Why issue convertible bonds?
Generally, convertible bonds come at a lower cost to the issuer.
Do bonds with quarterly coupons have lower yields than those with semi-annual coupons?
Yields on bonds are independent of the frequency of coupon payment. The most used by professionals yield to worst (maturity or call date) depends only on the perceived riskiness of the bond and the supply and demand conditions for the bond.
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 the difference between pre-refunded municipal bonds and escrow to maturity ones?
Bonds are "escrowed to maturity" when the proceeds of the refunding issue are deposited in an escrow account for investment in an amount sufficient to pay the principal of and interest on the issue being refunded on the original interest paymentand maturity dates, although in some cases an issuer may expressly reserve its right (pursuant to certain procedures delineated by the SEC) to exercise an early call of bonds that have been escrowed to maturity. Bonds are considered "prerefunded" when the refunding issue's proceeds are escrowed only until acall date or dates on the refunded issue, with the refunded issue redeemed at that time.
