EBK FINANCIAL MARKETS AND INSTITUTIONS
EBK FINANCIAL MARKETS AND INSTITUTIONS
7th Edition
ISBN: 9781260166101
Author: SAUNDERS
Publisher: YUZU
bartleby

Videos

Question
Book Icon
Chapter 6, Problem 1DYU
Summary Introduction

To discuss: The various kinds of bonds.

Bonds are debt instruments which are used by the companies to raise finance and this instrument bears interest on maturity. The instrument has specified or foxed maturity period and pay a specify rate of interest to the holders on the principal amount.

Expert Solution & Answer
Check Mark

Explanation of Solution

Following are the types of bonds:

  • Treasury bonds: The federal government are the authority who are empowered to issue the Treasury bond in order to raise fund to meet its deficit in their budget. The treasury bonds are other ways categorized as credit-risk free bonds. Usually the yield from these kinds of bonds are lower and are exempt from the income taxes of state.
  • Investment-grade corporate bonds: The investment-grade corporate bonds are usually issue by the following two parties:
    1. (a) Companies with relatively strong balance sheet
    2. (b) Financing vehicles with relatively strong balance sheet
  • High-yield bonds: The high yield bonds are issued by the following parties:
    1. (a) Companies with relatively weak balance sheet
    2. (b) Financing vehicles with relatively weak balance sheet
  • Foreign bonds: Foreign bonds are the bonds that are issued in the domestic or local market by the foreign entity to raise fund from the domestic market in the currency of domestic market.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!
Students have asked these similar questions
The Fortune Company is considering a new investment. Financial projections for the investment are tabulated below. The corporate tax rate is 24 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project.   Year 0 Year 1 Year 2 Year 3 Year 4 Investment $ 28,000         Sales revenue   $ 14,500 $ 15,000 $ 15,500 $ 12,500 Operating costs   3,100 3,200 3,300 2,500 Depreciation   7,000 7,000 7,000 7,000 Net working capital spending 340 390 440 340 ?
What are the six types of alternative case study compositional structures (formats)used for research purposes, such as: 1. Linear-Analytical, 2. Comparative, 3. Chronological, 4. Theory Building, 5. Suspense and 6. Unsequenced. Please explain
For an operating lease, substantially all the risks and rewards of ownership remain with the _________. QuestFor an operating lease, substantially all the risks and rewards of ownership remain with the _________: A) Tenant b) Lessee lessor none of the above tenant lessee lessor none of the aboveLeasing allows the _________ to acquire the use of a needed asset without having to make the large up-front payment that purchase agreements require Question 4 options: lessor lessee landlord none of the above
Knowledge Booster
Background pattern image
Finance
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Essentials Of Investments
Finance
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Mcgraw-hill Education,
Text book image
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:9781260013962
Author:BREALEY
Publisher:RENT MCG
Text book image
Financial Management: Theory & Practice
Finance
ISBN:9781337909730
Author:Brigham
Publisher:Cengage
Text book image
Foundations Of Finance
Finance
ISBN:9780134897264
Author:KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:Pearson,
Text book image
Fundamentals of Financial Management (MindTap Cou...
Finance
ISBN:9781337395250
Author:Eugene F. Brigham, Joel F. Houston
Publisher:Cengage Learning
Text book image
Corporate Finance (The Mcgraw-hill/Irwin Series i...
Finance
ISBN:9780077861759
Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:McGraw-Hill Education
Bonds Explained for Beginners | Bond Types 101; Author: TommyBryson;https://www.youtube.com/watch?v=yuKmHTgqZ5o;License: Standard Youtube License