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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 callable?
Callable is the designation of a bond that can be paid off earlier than its maturity date.
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 is the difference between yield to maturity and interest rate in bond investments?
The yield to maturity of a bond is the total return an investor can expect if they hold the bond until it matures, taking into account the bond's price, coupon payments, and time to maturity. The interest rate, on the other hand, is the fixed rate of return that the bond issuer pays to the bondholder periodically. In summary, yield to maturity considers the total return over the bond's life, while the interest rate is the fixed rate paid by the issuer.
Is a feature that permits the issuer to repurchase bonds at a stated price prior to maturity?
Call feature.
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 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.
What provision allows the issuer to redeem the bond before its maturity at a specified price?
Call Provision
Which level of government is most likely to receive revenues from parking permits?
A city government is likely the issuer of parking permits for city streets, and would obtain the revenue.
What is a callable?
Callable is the designation of a bond that can be paid off earlier than its maturity date.
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.
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 is the difference between yield to maturity and interest rate in bond investments?
The yield to maturity of a bond is the total return an investor can expect if they hold the bond until it matures, taking into account the bond's price, coupon payments, and time to maturity. The interest rate, on the other hand, is the fixed rate of return that the bond issuer pays to the bondholder periodically. In summary, yield to maturity considers the total return over the bond's life, while the interest rate is the fixed rate paid by the issuer.
When you buy a bond the issuer will owe you the full amount of the bond regardless of when you choose to cash it in?
When you buy a bond, the issuer agrees to repay you the full face value of the bond when it matures. If you choose to sell the bond before maturity, the issuer is not involved in that transaction - you would sell it on the secondary market to another investor.
When is a bond's per value generally repaid?
A bond's face value is typically repaid to the bondholder at maturity. This represents the principal amount borrowed by the issuer, which is returned to investors along with any final interest payments.
Consumers able and willinWhich of these is an element of a bond?
One common element of a bond is the coupon rate, which represents the annual interest rate paid by the issuer to the bondholder. This rate is typically fixed at the time of issuance. Other elements include the maturity date, which is when the bond reaches the end of its term, and the face value, which is the amount that the issuer agrees to repay the bondholder at maturity.
