Bonds and Treasuries

No

Unless there is a particular stipulation that one incurs a penalty for selling a corporate bond, then the price you get for a bond is what the market will pay. The term "withdraw" isn't quite correct, all you are doing is selling the bond to someone else. There are several factors that drive the price you'll get for the bond: Prevailing interest rates - are they lower or higher than the bond's coupon? Credit rating of company paying the bond - has it improved or deteriorated compared to when you bought the bond? Market liquidity of that bond issue - selling an IBM bond that is traded daily is easier and cheaper than selling a MySmallCompany Inc. bond that is sold only rarely. Dealer spreads narrow the more often a particular bond type is traded. Tax rates on corporate bond interest - have they changed since you bought the bond?

Debenture is a debt instrument to raise funds. It has a maturity period associated with it. At the end of the maturity, the company(borrower) should return the interest and principal amount.

Debenture Redemption Reserve is an amount kept as reserve for paying the debenture holder at the end of the maturity period.

The bond market is dominated by institutional investors, such as insurance companies, mutual funds, and pension funds, but bonds can be purchased by individual investors as well.

The Debenture loan is an unsecured debt backed by the credit worthiness of the borrower. The interest is calculated based on the 10-year Treasury rate plus a market-driven spread, which is currently about 65-75 basis points.

What I understand from just googling it is that a probate bond is a means of ensuring that the executor or administrator of an estate will administer the estate properly and not make off with the dead person's money. It ensures this by making the executor or administrator post a bond which I think is like getting insurance.

The executor/administrator (let's say "Dude") pays an "insurance premium" to the bond company ("insurance company,"), and if Dude messes up the estate, the bond company will then have to pay whoever was hurt, but can then come after Dude's butt to make him or her reimburse the bond company.

Also, I think Dude takes the insurance premium out of the estate itself, so that he/she doesn't have to pay it out of pocket.

Lastly, not everyone can be Dude, because a lot of people are rejected for having bad credit. That is to say, the bond company doesn't trust them not to steal stuff from the estate because their credit is so bad, and so won't insure them. This part doesn't make sense to me, because there's a big difference between being poor and being a crook, but hey, I didn't make the rules.

Typically no, unless this is agreed upon between the debt holder and the issuing institution. The exception to this is callable debt, which allows the issuing corporation to pay off the debt within a certain window, specified by the terms of the issuance.

Surety Cos...frequnrlty same as insurance Cos

Yes. A lot of investors buy municipal bonds. You'll like this about munis: if you buy munis from your own state, their income is usually free from state income tax.

If for example a company obtains a secured loan or overdraft facility from its bank, the latter is likely to insist that the company seals the banks standard form of debenture creating the charge and giving the bank various safeguards and powers

In finance, a convertible bond is a type of bond that can be converted into shares of stock in the issuing company, usually at some pre-announced ratio.

Common Stock wins hands down. Government bonds can return around 10% in the best interest rate periods whereas the average returns from good company stocks is more than 15% YoY. In case of bull market periods it can even go to 50% or more.

Normally, Asset Beta takes account of only business risks while Equity Beta takes account of both business and financial risks. For further information, get hold of a good corporate finance textbook.

Stock imparts ownership in a corporation.

'Oversubscribed' means that when they were issuing (selling for the first time) the bonds, more people wanted to buy more bonds than were available, so some missed out. What do you think the people who missed out will do when they start trading in th market? They'll probably buy them and push the price up, so being 'oversubscribed', or better, 'heavily oversubscribed' is a good thing in the short term for those investors who did get some of the securities.

Extremely Risky.

Some of the risks involved in investing in Bonds are:

1. Interest Rate Risk

2. Re-investment Risk

3. Call Risk

4. Default Risk &

5. Inflation Risk

The Default Risk is the highest risk factor wherein you may not get your money back and in case of Junk Bonds this is extremely high, that is why they are called Junk Bonds

Junk Bonds refer to Bonds issued by company's with low creditworthiness and past history of default in payments

the bond's maturity, redemption features, credit quality, interest rate, price, yield and tax status

Value of debenture depends upon where you are trying to cash it.

Legally speaking, the company or the organization which has issued the debentures has to honor the face value, presuming they are redeemable type, of course.

However, if you try to trade the debentures on stock exchange, several economical, financial and other considerations come in play. Naturally the price offered will reflect all these. It may not be the same as the one paid at the time of purchase .

Lower brokerage commissions for corporate bonds would make them more liquid and thus increase

their demand, which would lower their risk premium.

hope this helps people on their quizzes for econ!

The rate of interest offered by Bonds is marginally more than the interest offered by Banks.

A convertible debenture is a type of convertible bond. However, a debenture is unsecured debt, which means that there is no collateral for the bond. The alternative to a debenture would be a secured bond such as a mortgage bond that would be secured by real estate. If the company goes out of business, the collateral for the secured bonds would be used to pay off those bonds and the holders of the debentures would be paid from whatever is leftover. Most convertible bonds are debentures.

Indian Companies Act of 1956 added during an amendment in the year 2000. It states Indian company that issues debentures must offer debenture redemption service to protect investors against the possibility of company default. If a company does not create a reserve within 12 months of issuing the debentures, they will be required to pay 2 percent interest in penalty to the debenture holders. Only debentures that were issued after the amendment in 2000 are subject to the debenture redemption service.

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.

According to an article by Jeff Benjamin in Investment News (06Jan2011), there are over 60,000 state and local issuers.

From an investment or shareholder standpoint is a good thing

A debenture demonstrates confidence in the company. It is the same thing as lending someone money with interest without that someone puttiing anything up as collateral to guarantee the loan.

In other words, as the lender you are more sure that you will be paid back plus interest and therefore do not require anything as collateral.

It is the same principle as buying a government bond. As the purchaser, you know for sure you will get paid back plus interest.