Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
If normal operating revenues are inadequate to repay the debt, liquidation of collateral may be necessary. Corporate bonds can be either secured or unsecured by collaterals. Secured bond holders have a priority over others in case of bankruptcy. Most corporate bonds are meaning they are not secured by collateral. The suitability or appropriateness of any item or asset for use as collateral would depend in varying degrees on the following factors relating to the asset: Standardization, durability, marketability, and stability of value. Standardization refers to the worth and re-sale ability of asset, pledged as collateral, in the event of default. Durability relates to the ability of the asset to withstand wear and tear during its useful or economic life. The useful or economic life of an asset should be longer than term period of the debt. This is to ensure that the collateral will still be in useful condition and hence saleable even after the maturity of debt. Therefore, it can still be sold in the event that the borrower could not pay at maturity of the loan. Marketability refers to the depth of the market including secondary market for the collateral. Thus, assets that lend themselves to wide applications are better collaterals. Similarly, assets that have wide secondary or tertiary markets also represent better collaterals than those with little or no secondary market at all.
North Star Company, a U.S. based MNC, is considering to establish a subsidiary to capitalize on the removal of Eastern European border restrictions. The subsidiary would manufactur
Calculate the Total Cashflows from 2007 - 2011. Suppose that the company will require to increase their annual investment in fixed assets (representing new equipment) at the simil
Why does money have time value? Positive interest rates point out that money has time value. While one person lets another borrow money, the first person needs compensation in e
To calculate duration, we need to first obtain the values for V - and V + where V - is the price when the yield decreases by certain number of basis points and V +
Question : One activity of the study phase is: "Establish Ground Rules for the Study and Design Phases". (a) What are ground rules? (b) When developing ground rules for a
There are fixed as well as floating rate asset-backed securities. A floating rate asset-backed security is one whose underlying pool consists of loans or receivab
COST OF CAPITAL A project's Cost of Capital is the smallest amount of acceptable rate of return/required rate of return on funds committed to the project. It is a compensation
Investors require an 11% return on a preferred stock that pays a $2.30 annual dividend. What is the price
What is nondiversifiable risk? How is it measured? If not the returns of one-half the assets in a portfolio are perfectly negatively correlated along with the other half-which
The following treasury issues can be included for the construction of the curve: On-the-run treasury issues. On-the-run treasury issues and sele
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!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd