If a company needs 3B, why would they issue a bond for 6B? What are the benefits of issuing 6 vs 3?

Q: Why might a company choose to raise money through bonds, rather than take out a note payable or…

A: Bonds are the long-term liability of the company where the company raises the money in lieu of…

Q: Bond A is a municipal bond and Bond B is a corporate bond. Which bond should have the lower yield to…

A: A bond is the that instrument that is issued by company in order to reach the finance and the…

Q: What is a mortgage pay-through bond (MPTB)?

A: Mortgage Pay-through bond: MPTBs (Mortgage Pay-through bonds) are delivered in contradiction of…

Q: As an investor, would you want to buy a bond at a discount or premium?  Explain the reasoning behind…

A: In this question, we are required to determine whether investors prefer to buy bond at discount or…

Q: Finance What is the commonly used Excel model for bond valuation

A: Bonds are debt instruments. The issuing entity has to pay periodic interest to the bond holders.

Q: while putable bonds are beneficial to the investor when interest rates go down, the downside is that…

A: Bond risk management is the process of identifying, evaluating, and reducing the risks related to…

Q: (a) What are long-term liabilities? Give three examples. (b) What is a bond?

A: Liability seems to be a debt owing by one firm to an individual or company who is not the owner of…

Q: What are your thoughts about buying short term bonds vs. long term bonds in this economic situation?

A: Long-term bonds are more vulnerable to shifts in interest rates. The explanation is the existence of…

Q: The purpose of a discount price for bonds is to: Select one: a. Increase profits b. Compensate the…

A: solution Concept The bond is issued at discount when                 -the coupon rate is less than…

Q: A Callable Convertible

A: Benefits of callable bonds  1 Companies can redeem early by this way company can take advantage of…

Q: What is the difference between an investment - grade bond and a junk bond?  2 .  What are the…

A: The primary difference between an investment grade bond and a junk bond lies in the credit quality…

Q: 1. State 2 reasons why Net Present Value is a better decision criteria compared to other…

A: Net present value or NPV is an important concept used in capital budgeting. It is considered as a…

Q: What is meaning bond? And then try to determine the differences areas between bond and loan.

A: Bonds: A bond, also recognized as a static-income security, is a debt instrument shaped for the…

Q: How can we determine the amount of debt financing through bonds?

A: When the firm raises funds through the sale of its long-term or short-term debt instruments then…

Q: Interest Payments and Interest Expense for Bonds (Straight Line) Swiss Inc. sold 20-year bonds with…

A: ''It is a question with multiple sub-parts, therefore we will do the first three sub-parts. To get…

Q: Who issues Bonds? Why should you own Bonds?  What are the risks of owning Bonds?

A: Bonds are the debt instrument issued to the bondholders of the organisation.

Q: Bond Quotes. Consider a bond with a quote of 98:15-98:27. If you are the buyer of the bond, at what…

A: The bid price of the bond is the price at which a dealer is willing to buy the bond from us and Ask…

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: How does mortgage pay-through bond (MPTB) resemble a mortgage-backed bond (MBB)? How does it differ?

A: Introduction: The mortgage pay-through bonds are also called as hybrid securities. These bonds have…

Q: What is Walmarts bond rating?

A: The bo d rating is an instrument that measures the creditworthiness of corporate and government…

Q: If a new competitor with scale enters, does that increase, decrease, or have no effect on the credit…

A: solution concept credit spread                 The term Credit spread is widely used while assessing…

Q: 5. If an investor is long/the buyer a CDS they are deemed to have the economic interest of being…

A: When an investor buys a Credit Default Swap (CDS), they are essentially purchasing protection…

Q: of the following Premium on bonds payable is an. adjunct account.

A: Adjunct account is that which increase the book value of liability account. When a bond is issued at…

Q: What are some advantages and disadvantages of a typical AAA-rated municipal bond yielding 6%…

A: Municipal Bonds are issued by the state government. They may be treated as risk-free investment…

Q: Which of the following bond is the safest?  Treasury Bonds Corporate Bonds Savings Bonds

A: Bonds are a form of liability for the business, for which regular interest payments along with value…

Q: Define liabilities. Provide three examples.

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: Should financial institutions invest in junk bonds?

A: The answer for the theory question on junk bonds is discussed hereunder.  Dear student,  As you have…

Q: What is a bond payable?

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

Q: Explain what a callable bond is and under what conditions and expectations a company might wish to…

A: A callable bond can be defined as the type of bond which can be redeemed by the bondholders before…

Q: nd 2 are identical, except that Bond 2 has credit enhancement. Issuer of E 1. Which of the following…

A: Credit risk is issuer's inability or failure to repay the debt obligations.

Q: What does it mean when a company calls a bond?

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

Q: On June 30, 2023, Pharoah Limited issued $3 million of 20-year, 13% bonds for $3,225,689, which…

A: Bonds :Bonds is a long-term debts issued by the government and companies to raise funds for their…

Q: If you had to determine the selling price of a bond, how would you do so? What determines the…

A: Bonds are issued by an organisation in order to raise fund. Investors buy the bonds and receive the…

Q: Which statement describes the concept of cherry-picking? O Selling debt securities that go up in…

A: Cherry-picking refers to selectively choosing and exploiting favorable options while neglecting less…

Q: Which of the following is NOT TRUE? Select one: O a. If the stated rate is equal to the market rate…

A: Bonds issued are a form of liability for the business, on which it has to make regular interest…

Q: What are Euro bonds? Analyse the advantages and disadvantages of Euro bonds.

A: Eurobonds are international bonds that are issued in a different currency than the issuer's.…

Q: What is the advantage of issuing bonds instead of obtaining financing from the company’s owners?

A:

Q: When inflation increases, does that increase, decrease, or have no effect on the credit spread for a…

A: A credit spread is the difference in yield of a US Treasury security and the yield on a corporate…

Q: What do municipal bonds typically have a lower interest rate than corporate bonds?

A: Municipal bonds are  less likely to default than corporate bonds.

Q: What would be the value of this bond if it paid interest semiannually? was missed ?

A: Price of bond is the present value of coupon payment and present value of par value of bond taken on…

Q: Explain Mortgage pay-through bonds (MPTBs)?

A: A written agreement through which a lender gets the right to take the property that is put as a…