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What provision allows the issuer to redeem the bond before its maturity at a specified price?
Call Provision
What do you call annual interest the issuer promises to pay on the face value bond?
The coupon rate.
What is a non call life bond?
A noncallable bond is a debenture which the company or institution that issued it cannot force you to redeem before the final call date (i.e. they can't call it). For example, if you purchased a 30-year bond in 2005 with a 4.5% coupon, the issuer today would like to call that bond because they can borrow money more cheaply (i.e. at a lower interest rate). But if the bond is noncallable they cannot do that. The trade-off is that a noncallable bond generally has a slightly lower nominal coupon.
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.
What provision allows the issuer to redeem the bond before its maturity at a specified price?
Call Provision
What is a call provision when referring to money market instruments?
A call provision is a provision that gives the issuers of bonds (or other fixed income instrument) the right but not responsibility to repurchase the bonds or redeem a security prior to it maturing. A call provision will almost always favor the issuer rather than the investor.
What do you call annual interest the issuer promises to pay on the face value bond?
The coupon rate.
What is a non call life bond?
A noncallable bond is a debenture which the company or institution that issued it cannot force you to redeem before the final call date (i.e. they can't call it). For example, if you purchased a 30-year bond in 2005 with a 4.5% coupon, the issuer today would like to call that bond because they can borrow money more cheaply (i.e. at a lower interest rate). But if the bond is noncallable they cannot do that. The trade-off is that a noncallable bond generally has a slightly lower nominal coupon.
What is the risk of a municipal bond?
---- Depending on the number of days to call (or maturity), coupon rate, and price paid, any bond will have a different yield to worst (the lower of the yield to maturity or yield to call). If you decide to hold the bond to the potential call date or maturity date, the only risk assumed will be the risk of the issuer's default or coupon reset. This risk is qualified by rating agencies, such as Standard & Poor's, with bond ratings like AAA or BB, etc. AAA municipal bonds are commonly insured against the issuer's default. If you want to sell a municipal bond before the maturity or call date, you additionally bear the market risk of price fluctuations. These fluctuations will be mainly due to expectations about future interest rate changes in the market (e.g., Fed Fund Rate by FOMC).
Will a call provision increase or decrease the yield to maturity at which a firm can issue a bond?
Callable bonds will pay a higher yield than comparable non-callable bonds. Take from answers.com
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.
Journal Entry for callable bond?
Check out www.bondterrier.com which is an interactive learning tool dealing with Accounting for the Life-Cycle Events of Bond Liabilities that are (a) Convertible into Common Equity at the Holder's Option and (b) Callable at the Issuer's Option. Journal entries are provided for Issuance; Interest Payments; Discount/Premium Amortization; Conversion; Call; Maturity.
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.
In Louisiana how long do they have to arraign you after you post bond on mis.or felony charges?
"Speedy Trial" statutes usually call for a 90 day period, unless that provision has been waived by agreement between the defense and the prosecutor.
What is a call value?
While calling a function, if the arguments supplied are the original values it is called call by value. e.g. int sum(int a, int b) { return (a+b); } int main() { int a=10; int b=20; printf("Sum is %d",sum(a,b)); return 1; }
