Question

1what is a sucured bond? 2 Why is it difficult to sell debentures? 3 What is the face value of most bonds? 4 What documents specify the terms of a bind issue? 5 What makes it possible to retire bonds before they mature? 6 What is a redemption premium? 7. What does the conversion privilege allow the bondholders to do? 8 When do the investors profit from conversion?

Answer 1

1what является sucured связь? 2 Почему трудно продать долговые обязательства? 3 Что такое номинальная стоимость большинства облигаций? 4 Какие документы указать условия вопроса привязки? 5 Что позволяет выкупать облигации, прежде чем они созревают?6 Что такое выкупная премия?7. Что привилегия преобразования позволяют держателям облигаций делать?8 Когда инвесторы прибыль от конвертации?

Answer 2

1. A secured bond is a type of bond that is backed by specific assets, such as property or equipment, that serve as collateral for the bond. This means that in the event of default, the bondholders have a claim on the specified assets.

2. It is difficult to sell debentures because they are unsecured and do not have collateral backing, making them riskier for investors. Additionally, debentures are not backed by specific assets, so they may be less attractive to potential buyers.

3. The face value of most bonds is typically $1,000, although it can vary depending on the specific bond issue.

4. The terms of a bond issue are specified in documents such as the bond indenture, which is a legal contract between the bond issuer and the bondholders, outlining the terms and conditions of the bond issue.

5. Bonds can be retired before they mature if the issuer decides to do so, typically by using a call provision in the bond indenture. This allows the issuer to redeem the bonds early, usually at a specified call price.

6. A redemption premium is an additional amount that may be paid to bondholders if the issuer decides to redeem the bonds before their maturity date. This premium compensates bondholders for the early redemption of their bonds.

7. The conversion privilege allows bondholders to convert their bonds into a specified number of shares of the issuer's common stock. This gives bondholders the option to participate in the potential upside of the company's stock.

8. Investors profit from conversion when the market price of the issuer's stock exceeds the conversion price specified in the bond indenture. This allows bondholders to convert their bonds into stock at a lower price, potentially realizing a gain if the stock price continues to rise.