What is a payment-in-kind bond?
What will be an ideal response?
In an LBO or a recapitalization, the heavy interest payment burden that the corporation assumes places severe cash flow constraints on the firm. To reduce this burden, firms involved in LBOs and recapitalizations have issued bonds with deferred coupon structures that permit the issuer to avoid using cash to make interest payments for a period of three to seven years. There are three types of deferred coupon structures: deferred-interest bonds, step-up bonds, and payment-in-kind bonds. Payment-in-kind (PIK) bondsgive the issuer an option to pay cash at a coupon payment date or give the bondholder a similar bond (i.e., a bond with the same coupon rate and a par value equal to the amount of the coupon payment that would have been paid). The period during which the issuer can make this choice varies from 5 to 10 years.
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Costs for which of the following activities would not be included as part of research and development (R&D) costs?
A) ?testing in search for or evaluation of product or process alternatives. B) ?adaptation of an existing capability to a particular requirement or customer's need as part of a continuing commercial activity. C) searching for applications of new research findings or of other knowledge?. D) ?design, construction, and testing or preproduction prototypes and models.
Chris and Sarah are married with three qualifying children. Their AGI is $26,000. How much is their EIC (use the EIC formula)? (Round your answer to the nearest dollar)
A. $6,084. B. $1,650. C. $3,461. D. $6,431.
The goal in allocating a cost to cost objects is to achieve a rational allocation.
Answer the following statement true (T) or false (F)
Major themes that can be addressed in lectures or class discussions
What will be an ideal response?What will be an ideal response?