are types of bond insurance available in the market (explain them)? How do the bond insurance affect the bond price and bond yield

Q: What is Bond's interest income?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Examples of bond accounts?

A: Bonds are fixed-income instruments that are issued by governments and businesses to raise capital.…

Q: What does the call provision for a bond entitle the issuer to do?

A: The call provision for a bond is a feature that allows the issuer, which is typically a corporation…

Q: How are bonds amortized?

A: Bond Amortization: Over the course of the bond's existence, the principal (face value) of the loan…

Q: What are the difference between debt and equity and explain how the bonds market operates.

A: Debt are instruments which are used to fund a company’s requirement. These instruments include bonds…

Q: Difference between regular bond and perpetuity bond?

A: Debt markets are markets where you contribute within the institutions or trade substances by the…

Q: When a bond is issued, what is its present value?

A: The present value of the bond is the total of the present value of the bond's interest payments that…

Q: how to interpret the process of bond issuance?

A: Corporate Bond Issue: Corporate bond issuance is one method of raising capital for a company. A bond…

Q: What is original issue discount (OID) bond?

A: It is the amount of difference between the amount due at maturity and purchase value. These bonds…

Q: What are income bonds and indexed bonds?

A: The income bond is a type of debt instrument wherein the borrower is relied upon to pay just the par…

Q: what is the difference between bonds payable and accounts payable? explain your answer?

A: Bond payable and account payable both are liabilities of the company , which is to be paid in future…

Q: How is the interest paid to bondholders affected by the issuance of a bond at a discount or premium?…

A: Lets understand the basics. Bond can be issued at, (1) Par value or face value (2) At discount (3)…

Q: Explain the various types of bond. How are bonds traded in the market?

A: A bond is a debt security that is issued by many large entities and governments to borrow funds on a…

Q: What is a bond payable?

A: Long-Term LiabilitiesLong-term liabilities are the obligations of the business that need not be paid…

Q: What is new issue bond?

A: The bond is a fixed income financial instrument that is issued by the government or by the companies…

Q: How is an interest payment on a bond calculated?

A: Bonds are debt instruments issued by corporations with a fixed interest rate(coupon rate) and…

Q: When does a discount on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: What amount of interest is expensed on a bond interest payment?

A: Whenever an interest payment is made on bonds, amount of interest expensed : Interest expensed =…

Q: From Service Leader's perspective, why are the bonds callable? What does that mean?

A: A callable bond is a kind of bond which allows the issuer to redeem the bond before it reaches its…

Q: what is difference between a bond and a term loan? what are the advantages of a term loan over a…

A: A bond is a fixed-income security that speaks to credit to a borrower (normally corporate or…

Q: What is outstanding bond?

A: Bond: It can be defined as the loan given to a business or any other organization by the investor…

Q: Why is it necessary to amortize the discount and premium on bond issues?

A: Introduction:   Bonds may be sold at a discount, at a premium, or at face value.

Q: Why discount and premium on issue of bonds is amortized?

A: Bonds are intangible assets, the amortization is similar to depreciation, it means systematically…

Q: How is the value of a bond (or bond issuance) determined

A: This question is about determining the value of a bond (or bond issue).

Q: In regard to a bond discount or premium, what is the effective-interest amortization method?

A: Bonds: Bonds are long-term promissory notes that are issued by a company while borrowing money from…

Q: Why would we record a bond a premium or discount?

A: Bond is a type of debt security which is issued by the bond issuer at the time taking debt from bond…

Q: When does a premium on bonds payable occur?

A: Bonds Payable: Bonds payable are referred to long-term debts of the business, issued to various…

Q: What does the call provision for a bond entitle the issuer to do?

A: The call provision for a bond is a feature that allows the issuer, which is typically a corporation…

Q: What steps would you take to purchase a bond and how would you secure a return?

A: Bonds are corporate debt units that are issued by firms and collateralized debt obligations as…

Q: In regard to a bond discount or premium, what is the straight-line amortization method?

A: Straight-line amortization bondStraight line method of amortization is a process of amortizing…

Q: Which costs are included in bond issuance costs? How are they recorded?

A: Bonds:   Bonds are long-term promissory notes that are represented by a company while borrowing…

Q: What are the two ways for amortizing bond premiums and discounts? Each one must be explained.

A: One of the sources used by the corporation to raise capital is the issue of bonds. Types of bonds:…