Category: Education
Created by: SingleWriter
Number of Blossarys: 3
Bond rating indicates the probability of a default risk that is attached to the bond. Companies are usually ready to pay for a good rating since bond rating is what attracts investors.
Bond refunding is when a company replaces a bond entirely or partially. Refunded bonds usually have a really good rating some cash is kept aside for safety by the issuer of bond.
A bond, also referred to as corporate debt can be short term or long term. It is different from common stock since a bond holder has no ownership in a company. Moreover, bonds can also be callable in ...
This is a feature in a bond that allows the company to buy back the bond at a price that is decided. The period for using this provision is restricted though.
These bonds come with a floating rate of coupon payments, which means that coupon payments may vary based on the market fluctuations until the maturity. Floors and ceilings are often used to protect ...
Indenture basically lists the features of a bond. It consists of the par value of the bond, amount and date of issue, and maturity of the bond. It also has details regarding coupon payments and other ...
These are bonds that have a rating that is less than BB. These bonds do come with a high yield but also have a high default risk attached to them.