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An issuer of a bond is a borrower. When an entity, such as a corporation or government, issues bonds, it is essentially borrowing money from investors who purchase the bonds. In return for their investment, the issuer agrees to pay back the principal amount at maturity and make periodic interest payments. Thus, the issuer incurs debt while investors become creditors.
What else can I help you with?
Is potassium a lender or borrower?
lender
Is mortgage bond a liability?
Yes, a mortgage bond is considered a liability for the borrower. It represents a loan secured by real estate, where the borrower is obligated to repay the principal amount along with interest over a specified period. For the lender or investor, mortgage bonds are an asset, as they represent the right to receive payments from the borrower.
Who said the borrower is slave to the lender?
Solomon
Can you explain how collateral works for a loan?
Collateral for a loan is an asset that a borrower pledges to a lender as security for the loan. If the borrower fails to repay the loan, the lender can seize the collateral to recoup their losses. This reduces the lender's risk, making it easier for the borrower to obtain the loan.
What is a bond rating?
A bond issuer's probability of defaulting
Can a security or bond pledged be sold by the lender without recourse to the borrower?
Yes.
The covenants and other terms of the agreement between the issuer of bonds and the lender are set forth in the?
bond indenture
What is ordinary time in simple interest?
Any time that the borrower and lender agree to.Any time that the borrower and lender agree to.Any time that the borrower and lender agree to.Any time that the borrower and lender agree to.
Is potassium a lender or borrower?
lender
Is there legal notification of foreclosure from mortgage company or bank?
Yes. The lender must notify the borrower of the pending foreclosure.Yes. The lender must notify the borrower of the pending foreclosure.Yes. The lender must notify the borrower of the pending foreclosure.Yes. The lender must notify the borrower of the pending foreclosure.
Is mortgage bond a liability?
Yes, a mortgage bond is considered a liability for the borrower. It represents a loan secured by real estate, where the borrower is obligated to repay the principal amount along with interest over a specified period. For the lender or investor, mortgage bonds are an asset, as they represent the right to receive payments from the borrower.
What is bond in credit instrument?
A bond is a debt instrument issued by a borrower to investors, who essentially become lenders to the issuer. The issuer agrees to repay the borrowed amount at a specified future date (maturity) and pays periodic interest payments to the bondholders in the meantime. Bonds are used by entities such as governments and corporations to raise capital.
Why are bonds considered a form of debt financing?
Bonds are considered a form of debt financing because they represent a loan agreement between the issuer (borrower) and the bondholder (lender). The issuer borrows money by selling bonds to investors and agrees to pay them periodic interest payments and repay the principal amount at maturity. This makes bonds a form of borrowing that creates a liability for the issuer.
If lender mistakenly signs over auto title to borrower and borrower sales title who is libel?
A borrower should not have a title in their possession that they have borrowed money against. This belongs with the lender. Should the borrower sell the car, they would be libel.
What is the difference between a callable bond and a retractable bond?
A callable bond is where the issuer has the ability to redeem the bond prior to maturity. A callable bond is where the bond hold has the ability to force the issuer to redeem the bond before maturity. Hope this helps.
What is the major function of a Bond in commerce?
A bond is an instrument of indebtedness of the bond issuer to the holders. The issuer owes the holders a debt and pays them interest.
What is the term maker mean in a contract?
In a contract, the term "maker" refers to the party that creates or executes a financial instrument, such as a promissory note or a bond, and is responsible for repaying the debt outlined in the agreement. The maker is typically the borrower or issuer who promises to pay the specified amount to the payee or lender. This role is crucial as it establishes the obligation to fulfill the terms of the contract.
