The importance of knowing the terms of bond issues

Assignment Help Financial Management

Reference no: EM131926532

The importance of knowing the terms of bond issues, especially those relating to redemption, cannot be overemphasized.

Yet there have appeared numerous instances of investors, professional and others, who acknowledge that they don't read the documentation. For example, in an article published in the New York Times, the following statements were attributed to some stockbrokers:

"But brokers in the field say they often don't spend much time reading these [official] statements," "I can be honest and say I never look at the prospectus. . . . Generally, you don't have time to do that," and "There are some clients who really don't know what they buy. . . . They just say, ‘That's a good interest rate.'"

Why is it important to understand the redemption features of a bond issue?

Reference no: EM131926532

Questions Cloud

Definitions and concepts : A) Define osmolality. B) What are the routes of body water loss, and how much is lost by each per day?

Identify which of these describe a nurse you know : Taking the competences of the AONE as a reference, identify which of these describe a nurse you know what qualities/competencies

Organisms over a relatively short period of time : We are focused on microevolution, or small changes within a species/population of organisms over a relatively short period of time.

Write program that prompts user to enter an input file name : Write a Java program called Tram.java that, firstly, prompts the user to enter an input file name. To practise reading from and writing to the console.

The importance of knowing the terms of bond issues : The importance of knowing the terms of bond issues, especially those relating to redemption, cannot be overemphasized.

Compare the gymnosperm life cycle : Combine your own diagrams and discussion to compare the gymnosperm life cycle (from unit 1) with the angiosperm life cycle.

Success of angiosperms in their life cycle : List and describe two unique evolutionary adaptations that have occurred to further the success of angiosperms in their life cycle.

What is the overnight mark to market profit : Now, assume that a call option on stock XYZ had a delta of 0.8. A market maker created a delta hedging position against a 100 short call position.

What is happening to that blood cell at the different : Include information about what is happening to that blood cell at the different locations (i.e., losing oxygen et.). Use only information from the text.

User Account

All Pages