
(a)
Bond: Bond is a financial instrument which generates the fixed returns to the investors within a specified period of time. The income generated on the bonds is known as interest amount.
Secured bonds: Secured bonds refer to the bonds which are secured by the assurance of issuer that in any loss, the interest will be paid from the sale of a specific asset which is put aside as a collateral of bond.
Unsecured bonds: Unsecured bonds refer to the bonds which are not secured by the pledge or any specific asset.
Convertible bonds: Convertible bonds are the bonds which can be converted into equity within a pre-specified period.
Callable bonds: Callable bonds are the bonds for which the issuer can make a call to buy back the bonds before its maturity.
To Explain: The difference between secured and unsecured bonds.
(b)
To Explain: The difference between convertible and callable bonds.

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Chapter 15 Solutions
ACCT.PRINCIPLES (LL)-PACKAGE
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- Can you solve this general accounting problem using appropriate accounting principles?arrow_forwardWhat will its net income be?arrow_forwardWhich of the following is a characteristic of current assets?a) They are expected to be used or converted into cash within one yearb) They include long-term investmentsc) They are not liquidd) They represent debts the company must payarrow_forward
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