Call protection is a provision of some bonds that prohibits the issuer from buying it back for a specified period of time. The period during which the bond is protected is known as the deferment period or the cushion. Bonds with call protection are usually referred to as deferred callable bon...
A call protection is common with some bond issues as well as different types of mortgages and loans. Essentially, call protection prevents the issuer from instigating an early call on the financial instrument. In the case of bonds, this means that the bond issue must be in effect for a ...
It reveals that the call protection have become more prevalent as a way to entice investors to more deals. It also notes that having call protection on a term loan keeps it competitive with bonds because investors want to lock in a yield for a minimum period of time.Kellerhals...
Yield to call(YTC) is theamount an investor could earn if a bond is called, whileyield to worst(YTW) is thelowest amount an investor could earnif a bond is purchased at its current price and held until it is called or matures. For bonds with one call date, YTW is the lower of YTC...
less call protection than bonds selling at par. B. greater reinvestment risk than bonds selling at par. C. greater price volatility than bonds selling at par. 相关知识点: 试题来源: 解析 C A deep discount bond is a bond selling at a discount of at least 20%. This means that a 1000...
period is four years, which means the issuer cannot call the bonds for the first four years of the bond’s life regardless of how interest rates change. After the call protection period ends, bondholders are exposed to the risk that the bonds may be paid off if interest rates drop below...
Call Protection. To protect bondholders from premature redemption, some bonds include call protection provisions that restrict the issuer's ability to exercise the yield call option during a specified period afterthe bond's issuance. 中文回答: 什么是收益率看涨期权? 收益率看涨期权是指债券或其他债务...
and issue a new bond at a lower interest rate, reducing their liabilities. However, to protect the bondholder, most callable bonds also includecall protection, which prevents the bonds from being called for a certain period of time and thereby guarantees the current interest rate for that time....
b.A demand to submit bonds to the issuer for redemption before the maturity date. c.An option to buy a certain quantity of a stock or commodity for a specified price within a specified time. d.A demand for payment due on stock bought on margin when the value has shrunk. ...
In addition, some callable bonds come with a predetermined date, called call protection, after which the issuer can redeem the bond; others are freely callable by the issuer at any time. The bond call feature protects the issuer when the market interest rate drops and provides them the opportu...