List and describe the various types of bonds

What will be an ideal response?


The various types of bonds include: a) secured bonds; b) income bonds and participating bonds; c) convertible bonds; d) callable bonds; and e) AAA bonds and junk bonds. Secured bonds provide the security of specific corporate property in addition to the general obligation of the corporation. Income bonds condition the payment of interest to some extent on corporate earnings, while participating bonds call for a stated percentage of return, regardless of earnings, with additional payments dependent on earnings. Usually at the option of the holder, convertible bonds may be exchanged, in a specified ratio, for other securities of the corporation. Callable bonds are subject to redemption provision that permits the corporation to redeem or call (pay off) all or part of the issue before maturity at a specified redemption price. AAA bonds and junk bonds connote the grade of investment bonds from low risk to high risk.

Business

You might also like to view...

What is social movement unionism and how might this approach be used to increase labor's bargaining power and protection for workers.

What will be an ideal response?

Business

Lisa brings a lawsuit against her employer for unlawful discrimination. Lisa is successful in proving that she was unlawfully discriminated against by her employer. Lisa may be awarded

a. back pay, but not retroactive promotions. b. retroactive promotions, but not back pay. c. damages, but not back pay. d. back pay, retroactive promotions and damages.

Business

The policies and strategies pertaining to employee compensation comprise a

A. performance appraisal. B. profit-sharing system. C. compensation system. D. wage survey. E. job evaluation.

Business

There is no way to avoid carrying inventory, so the best an owner can do is manage its movement and control its costs.

Answer the following statement true (T) or false (F)

Business