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Foreign Currency Convertible Bond?
A type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument. It acts like a bond by making regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock. These types of bonds are attractive to both investors and issuers. The investors receive the safety of guaranteed payments on the bond and are also able to take advantage of any large price appreciation in the company's stock. (Bondholders take advantage of this appreciation by means warrants attached to the bonds, which are activated when the price of the stock reaches a certain point.) Due to the equity side of the bond, which adds value, the coupon payments on the bond are lower for the company, thereby reducing its debt-financing costs.
When market interest rates exceed a bond's coupon rate the bond will?
When market interest rates exceed a bond's coupon rate, the bond will:
If the bond's price increases will it increase or decrease bond's yield?
neither once the bond is created the yield is set. the bond price is simply a reflection of the current rate and the rate, 'yield' of the bond.
What is the past tense of take advantage?
that would be took advantage
Why do bond prices and yields vary inversely?
Bonds are valued by discounting the coupon payments and the final repayment by the yield to maturity on comparable bonds. The bond payments discounted at the bond’s yield to maturity equal the bond price. You may also start with the bond price and ask what interest rate the bond offers. This interest rate that equates the present value of bond payments to the bond price is the yield to maturity. Because present values are lower when discount rates are higher, price and yield to maturity vary inversely.
What are advantage and disadvantage of English bond?
English bond use a lot of facing brick, but it stability is higher than stretches bond.
What are advantage and disadvantage of stretcher bond?
distributes loads across the wall
Describe a situation in which a company would choose to issue bonds. Discuss the advantages of bond financing. What challenges will this company face regarding bond financing?
what are the advantage of bond financing?
What are the advantages of a performance bond?
A performance bond is used to ensure a customer winds up with a finished product when undergoing a project involving a contractor. An advantage is there is no deductible when using a performance bond, and you have lower premium costs.
An advantage of bond financing is?
An advantage of bond financing is: a) Bonds do not affect owners' control. b) Interest on bonds is tax deductible. c) Bonds can increase return on equity. d) It allows firms to trade on the equity. e) All of the above.
Why are double bonds an advantage?
Because double bond has more bonding force than singal bond because two electrons take place in bonding of each atom which give more strength to its bonding force
What is the advantage and the disadvantage of static electricity on Industries?
I only know of disadvantages, it can cause severe damage in electronic equipment And advantage is Static electricity can be used to temporarily bond materials together and or compress non conductive material.
Foreign Currency Convertible Bond?
A type of convertible bond issued in a currency different than the issuer's domestic currency. In other words, the money being raised by the issuing company is in the form of a foreign currency. A convertible bond is a mix between a debt and equity instrument. It acts like a bond by making regular coupon and principal payments, but these bonds also give the bondholder the option to convert the bond into stock. These types of bonds are attractive to both investors and issuers. The investors receive the safety of guaranteed payments on the bond and are also able to take advantage of any large price appreciation in the company's stock. (Bondholders take advantage of this appreciation by means warrants attached to the bonds, which are activated when the price of the stock reaches a certain point.) Due to the equity side of the bond, which adds value, the coupon payments on the bond are lower for the company, thereby reducing its debt-financing costs.
What is the advantage of buying zero-coupon bonds?
The advantage of buying zero-coupon bonds is that when they reach maturity, the investor then receives the full face value of the bond. These bonds became popular in the 1980's even though they were first released in the 1960's.
Write a paragraph of 10 lines on relations?
a relation is a strong bond of love and care in relation we don't see our advantage but our relater's work done or not. the best example of relation is a family
Is a peptide bond a covalent bond?
Yes, a peptide bond is a covalent bond.
What is bond in and bond out?
bond avenue
