Question

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

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.