What is a call provision and why would a call provision be included in the terms of a bond?

Q: What is investment-grade bond?

A: Bond is a financial instrument. Issuer issues bond to raise the fund and payback the amount at the…

Q: How are bonds amortized?

A: Bond Amortization: Over the course of the bond's existence, the principal (face value) of the loan…

Q: How do I determine the duration of a bond

A: It is an object used in bond valuation to determine the sensitivity of the bond. High duration comes…

Q: How do interest rates affect bond valuations? What are the key assumptions in valuing a bond?

A: Bonds are the form of debt payable by the company. Interest rates on bonds to be paid is coupon…

Q: 8. What is a put provision and why would a put provision be included in the terms of a bond.

A: A put provision is a provision that allows a bond holder to resell the bonds back to the issuer…

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: what is the difference between bonds payable and accounts payable? explain your answer?

A: Bond payable and account payable both are liabilities of the company , which is to be paid in future…

Q: What is new issue bond?

A: The bond is a fixed income financial instrument that is issued by the government or by the companies…

Q: 5. What is the difference between a general obligation bond and a revenue bond and what the…

A: General obligation bonds are municipal bonds that are backed by the state or local government. These…

Q: What does it mean to amortize a bond premium or discount? Why is it necessary?

A: Introduction: A bond is a contract between the bond lender and the bondholders. The two most common…

Q: What information is contained in a bond indenture? What purpose does it serve?

A:

Q: In regard to a bond discount or premium, what is the effective-interest amortization method?

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

Q: How does collateral affect the interest rate on a bond? How does subordination affect the interest…

A: The interest rate on a bond is affected by many factors like collateral, subordination, etc.

Q: Explain bond redemption.

A: A Bond is an instrument which guarantees fixed return to the investor. A bond involves no risk so…

Q: What is a securitized Bond?

A: When the outstanding bonds are pooled together to form a new category of product and then is traded…

Q: A bond that has only one payment, which occurs at maturity, defines which one of these types of…

A: One payment which occurs at maturity means only principle amount of bonds are refunded and no coupon…

Q: Define Original-issue discount bond.

A: Original issue discount: An original issue discount is the variation among selling price of a bond…