Senior versus subordinate bonds, Financial Management

This is again a distinction which becomes important in case of a default. The senior bondholders have to be paid before the subordinate bondholders. This means that if the assets of the company are insufficient to pay all the debts, the senior bondholders would get whatever amount can be realized and then the subordinate bondholders will be paid from the available balance. If the assets are a little more, the senior bondholders may be paid in full and the subordinate bondholders may get partial payment.               

Posted Date: 9/8/2012 4:27:39 AM | Location : United States

Related Discussions:- Senior versus subordinate bonds, Assignment Help, Ask Question on Senior versus subordinate bonds, Get Answer, Expert's Help, Senior versus subordinate bonds Discussions

Write discussion on Senior versus subordinate bonds
Your posts are moderated
Related Questions
Hi can someone help me with my assignment also understand it in order for me to do the voice thread and answer all questions that might confront me.

Different Cost of Capital with Changed Proportions: It is quite possible that the specific costs of capital of different sources may be affected by the amount of funds' raised and

annual uasage of stock 100,000units carrying cost per unit of stock RM2 order cost RM250 question there is a constraint arising from the floor space of the

(a) Presume we have a portfolio of n names with some default correlation ρ . The risk of the complete portfolio moves according to the change in default correlation. Alternative

Q. Define the Cash Budget? Cash Budget: - A cash budget is an estimation of cash receipts and cash payments for a future period of time. It is prepared to predict the cash requ

Due to the complexity of the tasks involved in many projects, communication of responsibility for those tasks is often helped by means of graphical planning techniques.

Q. What do you mean by Public deposits? Public deposits are the fixed deposited by the business enterprises directly from the company. This source of the raising the short term

Crown Co. is expecting to receive 100,000 British pounds in one year. Crown expects the spot rate of British pound to be $1.49 in a year, so it decides to avoid exchange rate risk

are footnotes important in analysing ratios

Various other types of bonds are- 1. Domestic Bonds 2. Foreign Bonds 3. Euro Bonds  4. Global Bonds 5. Floating Rate-Bonds