Describe what a common stock yield is and why it is important for an investor. Describe and explain the importance of a bond yield also. How is a common stock investor and a bond investor different? What different expectations do they have? If a common dividend is not paid, what recourse do the stockholders have? What recourse do bond holders have available if bond interest payments are not made?

Q: aborate on your answers and use examples and/or d

A: Step 1 One of the first and most difficult challenges many business owners and founders face is…

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: What are the main advantages and disadvantages of            investing in bonds?

A: Bonds are debt instruments issued by an entity. The issuing entity can either be a corporate entity…

Q: What are the more recently issued (and more frequently traded) bonds called? Why do investors favor…

A: The more recently issued (and more frequently traded) bonds are called Treasury Bonds which are…

Q: Why is yield to maturity more important than coupon rate when it comes to bonds?

A: The Yield to maturity refers to the return that one can expect if a thing is kept till its maturity.…

Q: It's important for investors to understand what a stock's yield is and why it matters. Define and…

A: Introduction: The earnings made and realized on an investment over a given period are called…

Q: Which is not considered in bond valuation? a. The required rate of return of the investors which…

A: Bonds are issued to raise finance for various purposes. The borrower pays the bondholder interest…

Q: If given the original value (par value) and market price (the price the bond sold for), how do you…

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

Q: Explain the difference between owning a bönd vs owning a stock? What are the advantages and…

A: There are many ways of doing investment and type of investment depends on required rate and risk…

Q: Why do some financial analysts treat preferred stock as a special type of bond rather than as an…

A: Preferred stock refers to the type of financial asset that are between equity and debt asset.…

Q: Briefly describe why investors should buy high-quality (non-speculative) bonds based on…

A: Bonds are fixed income instruments and are rated according to their risk of default by independent…

Q: Why is it important to know the interest rate risk when investing in bonds? Does interest rate risk…

A: Interest rate risk is the risk that the bond investment reduces in value which results from changes…

Q: Debt Securities - These securities are in the form of debt or borrowings which have to be repaid by…

A: Debt Securities or Debt Instruments - Debt securities are financial instruments that provide their…

Q: How can we figure out the price of a bond's initial public offering (IPO)? Is it the same as the…

A: The price of the bond is the present value of cash inflows using the expected rate of return. There…

Q: Briefly explain how the yield to maturity (YTM) of a corporate bond is calculated. Is this the…

A: YTM is the compounded annual rate of return earned on debt security purchased on given date and held…

Q: 1. What is the difference between a stock and bond? 2. If you were an investor, where would you…

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

Q: What are the advantages and disadvantages of investing in stocks vs bonds

A: Investing in stocks has the following risk: Unlike bonds, investment in common stocks does not…

Q: If you are an investor will you choose to investment in bonds? Why?

A: Bond is a debt security.

Q: Will you choose to invest in bonds if you are an investor? Why?

A: A bond is a long-term investment instrument that requires a corporation to return the amount of the…

Q: Is it beneficial for bondholders when the yield to maturity grows or decreases? Why?

A: Introduction: When the yield to maturity of a bond rises, the bond's price declines as a result of…

Q: Explain how does a bond par value differs from its market value? Are variable rate bonds attractive…

A: 1. The par value is the face value which the borrower is entitled to return to the investor at…

Q: how the zero-coupon rate bond provides return to the investor and elaborate on the advantages to the…

A: Bond: Bond is a kind of debt instrument typically issued by corporations, government organizations…

Q: Which statement is FALSE regarding bonds?Select one:The pay back their face value within their…

A: Bonds, when issued, represent debt obligations of the firm, not equity. Therefore, their issuance…

Q: Why might a firm prefer to finance its investments with bonds rather than stocks? Alternatively, why…

A: Introduction: Bond is nothing but debt securities issued by a company or government if they want to…

Q: What is the convexity of a coupon bond? Why do investors tend to have a positive view of convexity?

A: Convexity is an indicator of the skewed relationship between bond prices with yields. Convexity…

Q: Both stock and bond returns are based on the cash flows generated by the issuing firm. How do…

A: Shareholders : In simple words, the shareholders of the company refers to the equity stakeholders of…

Q: Why are long-term corporate bonds higher risk than short-term corporate bonds? Provide an example

A: Longer term bonds have higher risks than short term bonds due to their duration and time period.…

Q: Explain the importance of common stock yield to investors. Define and explain a bond yield. What…

A: Stock Yield: The dividend yield, which is expressed as a percentage, is the difference between the…

Q: Do bondholders fare better when the yeild to maturity increases or when it decreases? Why?

A: A bondholder refers to an investor or any owner of debt securities which large corporations or the…

Q: What is a common stock yield and why is it important to investors? Additionally, define and explain…

A: Introduction: The dividend yield is another term for common stock yield. And it's a straightforward…

Q: When prevailing market rates decline over the time an investor owns a bond, there is often an…

A: The bond price valuation models are important techniques that determine the bond price, yield rates,…

Q: As a bondholder, what risks would you face, and how are these risk factors lower for bonds than they…

A: Bond:  A bonds area unit is typically thought to be a secure investment. Bonds are unit monetary…

Q: Is a higher or lower yield to maturity desired by bondholders? Why?

A: The speculative rate of return or interest rate of a fixed-rate security, such as a bond, is known…

Q: How the zero coupon bond provide returns to investors

A: Zero-Coupon Bond -It is a kind of bond that is issued below the par value and matured at the par…

Q: What are the characteristics of a zero-coupon bond, and why do investors purchase them despite the…

A: Zero-coupon bonds means those bonds which does not pay you interest. Its other name is accrual bond.…

Q: Why would an individual invest in bonds rather than stock

A: A bond is a fixed income instrument that depicts a loan made by the issuer to the borrower. These…

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.