Bond provisions will make bond more desirable to investors

Assignment Help Financial Management
Reference no: EM13729819

Which of the following bond provisions will make a bond more desirable to investors, other things being equal?

a. The bond is callable.

b. The coupon rate is lower.

c. The bond is subordinated.

d. The bond is convertible.

Reference no: EM13729819

Questions Cloud

What proportion of a firm is debt financed : What proportion of a firm is debt financed if the WACC is 12%, the return on debt is 6%, the tax rate is 40% and the required return on equity is 18%?
A zero coupon bond with a face value : A zero coupon bond with a face value of $1000 is issued with an initial price $507.96. the bond matures in 18 years. what is the implicit interest in dollars for the first year of the bond's life . use semi-annual compounding.
What will be firms quick ratio after nelson has raised : The Nelson Company has 1,740,000 in current assets and 600,000 in current liabilities. Its initial inventory level 420,000 and it will raise funds as additional notes payable and use them to increase inventory. What will be the firm's quick ratio aft..
Here is another example of the ramifications of slavery : Here is another example of the ramifications of slavery that is often not known by many people. The following brief video clip discusses the controversy around descendants of former Cherokee Nation slaves who are fighting to remain a part of the trib..
Bond provisions will make bond more desirable to investors : Which of the following bond provisions will make a bond more desirable to investors, other things being equal?
Cultural differences in hofstede''s five dimensions : On the website for MindTools, Inc., read Hofstede's Cultural Dimensions. Please note that Hofstede's original model has been updated from 5 to 6 dimensions. You will see the 6th dimension in the next link. For this assignment, it is your choice wheth..
What is the nominal rate of return on these bonds : The outstanding bonds of Roy Thomas inc provide a real rate of return of 3.5%.the current rate of inflation is 2.1 %. What is the nominal rate of return on these bonds?
What is a market price of face value bond : Guegen inc offers a 9.00% bond with annual payment. The YTM is4.9% and maturity date is 10 years. What is a market price of a $1000 face value bond? Wine and roses inc offers a 9.0% coupon bond with semi-annual payment and YTM of 9.65%. The bonds mat..
Interest payments-what is its yield to maturity : A twenty-year, 5% coupon, $1,000 bond is for sale. It makes annual (once per year) interest payments. (a) What cash flow can I expect if I buy the bond? (b) If its yield to maturity is 7%, what is its price? (c) If its price is $1,080.20, what is its..

Reviews

Write a Review

Financial Management Questions & Answers

  Find cost of debt - estimate cost of equity

How you estimated the percentage of capital that comes from debt, and common equity - find cost of debt

  Smith earned during the time he held the t-bill

Smith buys a 182-day US T-Bill at a price which corresponds to a quoted annual rate of 182-day T-Bills of 10%. 91 days later smith sells the T-Bill at which time the prevailing quoted annual discount rate of 91-day T-Bills is also 10%. Find th..

  Top gun records and several movie studios have decided to

top gun records and several movie studios have decided to sign a revenue-sharing contract for dvds. each dvd costs the

  Saving for retirement plan beginning

Your job pays you only once a year for all the work you did over the previous 12 months. Today, December 31, you just received your salary of $53,000 and you plan to spend all of it. However, you want to start saving for retirement beginning next yea..

  Describe statistical data on participation rates

Describe statistical data on participation rates, education and employment and income levels of individuals with disabilities

  Explain whether anthonys orchard should invest

Explain how purchase of the apple press might affect the company's revenue goals. Based on this information, explain whether Anthony's Orchard should invest in the apple press.

  Compute the expected project length

Calculate the expected project length, variance of the critical path, standard deviation of the critical path and the activities along the critical path.

  Evaluate the costing process and procedures

Evaluate the costing process and procedures of the organisation with respect to method or approach utilised - capital decision making process within the organisation with regards to what methods are utilised, how such methods are chosen, how project..

  What is the companys cost of preferred stock

Duggins Veterinary Supplies can issue perpetual preferred stock at a price of $54.50 per share with an annual dividend of $4.50 a share. Ignoring flotation costs, what is the company's cost of preferred stock, rps? Round your answer to two decimal pl..

  Maturity quoted at discount yield

What is the price of a U.S. Treasury bill with 56 days to maturity quoted at a discount yield of 1.20 percent? Assume a $1 million face value. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

  Determine the modified internal rate of return for project

Determine the modified internal rate of return for a project that costs $75,000 and would yield after-tax cash flows of $12,000 the first year, $14,000 the second year, $17,000 the third year, $19,000 the fourth year, -$23,000 the fifth year, and $29..

  Forms of exposure to international financial risks

Prepare a report on the management of risk in an international environment and evaluate the consequences of operational and strategic decisions in an international context and through financial analysis.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd