Bond derivatives-callable bonds , Financial Management

Callable bonds give the right to the issuer to redeem the bond prior to its maturity date, at a specified call price. These bonds are beneficial to the issuers when the coupon interest paid by the bond is higher than the prevailing interest rates. Basically, the company can issue the same bonds at a lower interest rate leading to lower cost of financing. 

Posted Date: 9/8/2012 4:35:46 AM | Location : United States







Related Discussions:- Bond derivatives-callable bonds , Assignment Help, Ask Question on Bond derivatives-callable bonds , Get Answer, Expert's Help, Bond derivatives-callable bonds Discussions

Write discussion on Bond derivatives-callable bonds
Your posts are moderated
Related Questions
What is the role of securities firms in investment intermediaries? Securities firms assist within the trading of existing securities into the secondary markets. The two major c

How does the deposit-loan rate spread in the Eurodollar market compare with the deposit-loan rate spread in the domestic U.S. banking system?  Why? Answer: The deposit-loan sprea

List the benefits of the flexible exchange rate regime. Answer:  The benefits of the flexible exchange rate system include: a) Automatic attainment of balance of payments eq

Currently, many foreign firms from both developed and developing countries obtained high-tech U.S. firms. What might have motivated these firms to obtain U.S. firms? Answer: Se

Municipal Securities are debt securities issued by a State, Municipality or a County in order to finance its capital expenditures. These securit

The face value of the debt security can be thought of as the principal amount on which interest is paid by the issuer. It is the amount the issuer is willing to r

What is the meaning of Breakeven point?

• Sales revenue line drawn and labelled correctly and accurately • Fixed cost line (at $1,020) labelled and drawn accurately and correctly • Total costs line (starting at $1,

Explain what will happen while the government imposes a minimum price that is below the market equilibrium price. Why is this true? The minimum price will comprise no impact on t

Issuance Calendar Issuance calendar gives clear and timely information about the borrowing program of the government. It clearly conveys the maturity profile of outstanding sto