Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. prompt: bonds are long term debt offerings issued

Prompt: Bonds are long term debt offerings issued by governments and corporations. Many corporate bonds contain...

80.2K

Verified Solution

Question

Finance

Prompt: Bonds are long term debt offerings issued bygovernments and corporations. Many corporate bonds contain a ‘callprovision’. This feature requires the issuer to pay a price abovepar value when the bond is ‘called’. This is the call premium.Discuss why a bond issuer would use a call feature and then discussthe investor’s pricing of a bond with a call feature. Include adiscussion of scripture as it applies to bonds as debtofferings.
Requirements: 250 words minimum

Answer & Explanation Solved by verified expert
3.8 Ratings (440 Votes)
An issuer may choose to call a bond when market interest rates decline as compared to interest rate of the bond That way the issuer can save money by paying off the bond and issuing another bond at a lower interest rate This is similar to refinancing the mortgage on your house so you can make lower monthly    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

Prompt: Bonds are long term debt offerings issued bygovernments and corporations. Many corporate bonds contain a ‘callprovision’. This feature requires the issuer to pay a price abovepar value when the bond is ‘called’. This is the call premium.Discuss why a bond issuer would use a call feature and then discussthe investor’s pricing of a bond with a call feature. Include adiscussion of scripture as it applies to bonds as debtofferings.Requirements: 250 words minimum

Other questions asked by students

Q

V Itranscript At 10 00 a m the number of bacteria in a jar is...

Basic Math
Q

Cecil C. Seymour is a 64-year-old widower. He had income for 2018 as follows: Pension from former...

Accounting
Q

According to the Carnegie unit system, the recommended number of hours students should study per unit...

Basic Math
Q

Describe how arterioles control blood flow through intrinsic and extrinsic signaling mechanisms. Plot and describe reactive...

Medical Sciences
Q

Discuss what is meant bg the following paradigm of all life: DNA >RNA>PROTEIN

Medical Sciences
Q

write a background research for \" the presence of biofertilizers increases the rate of growth of...

Biology
Q

Planarians lack dedicated respiratory and circulatory systems because Onone of their cells are far removed...

Biology
Q

Find the surface area of revolution about the x axis of y 5x 6 over...

Calculus
Q

Arrange the following people as sources of information from most reliable to least reliable and...

Accounting
Q

The following transactions occurred for the Wayne Corporation in March, its first month of operations....

Accounting
Q

Mancine Corporation has provided the following contribution format income statement. All questions concern situations that...

Accounting
Q

What are some important problems that accountants have to deal with in computerized accounting systems...

Accounting