What is a bond with an embedded option?
What will be an ideal response?
A bond with an embedded option is a bond that contains a provision in the indenture that gives either the bondholder and/or the issuer an option to take some action against the other party. For example, the borrower may be given the right to alter the amortization schedule for amortizing securities. An issue may also include a provision that allows the bondholder to change the maturity of a bond. An issue with a put provisionincluded in the indenture grants the bondholder the right to sell the issue back to the issuer at par value on designated dates.
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Olivia Co owns 5,600 of the 14,000 outstanding shares of Hobbitt Corp common stock and exercises significant influence over the company. During 2011, Hobbitt earns $$90,000 and pays cash dividends of $25,000 If the beginning balance in the investment account was $190,000, the balance at December 31, 2011 should be:
a. $192,000 b. $172,000 c. $180,000 d. $216,000
Comment on the change in both the carrying value and the balance of the Unamortized Bond Premium account over the life of a bond issue
______ research seeks to find both the similarities and differences that exist across cultures regarding a particular management issue.
A. International B. Comparative C. Intercultural D. Indigenous
Bryson is twenty years old and has just earned his associate's degree and is looking for his first job. Given his age, how many different employers will he likely have over the course of his career?
A) 1 B) 10 C) 4 D) 20