For the company: eBay. 1000 words - DOCUMENT how are bonds different than stocks and the...

For the company: eBay.

1000 words - DOCUMENT how are bonds different than stocks and the same - what are the maturity dates - coupon rates - coupon timing - call provisions - sinking fund - rating of the company bonds - and justify that rating - are the bonds typically sold at premium or discount - current yield - the coupon rate of any particular bond and the market rate are determined primarily by the prevailing risks and their impact on the debt instruments - discuss these risks as related to your company and its bonds - evaluate minimally one bond by computing either the yield to maturity or the intrinsic value (documenting all research) - would you invest in this corporations bonds

Homework Answers

Answer #1

- Bonds represent debt while stock represent an ownership stake in the company .

-Bond has maturity date whereas equitydoes not have one.Maturity date for a bond is the date on wich the principal amount is due and it is paid to the investor and interest payment stops.

-coupon rate and copoun timing are related to bond.Copoun rate is the annual interest income paid to bondholder.

-call provision is a provision that allows the original issuer to repurchase or retire the bonds.It generally comes with a time window within which the provision can be exercised.

-Sinking fund is a fund to which money is added regularly to ensure investors confidence that promised money will be paid.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question