B is incorrect because a make-whole call provision is a form of call provision; i.e., a provision that provides the issuer the right to redeem all or part of the bond before its maturity date. A make-whole call provision requires the issuer to make a lump sum payment to the ...
When you sell bonds on the secondary market, you keep the interest payments you received before the sale. The new owner gets the interest payments from that point until the bond reaches its maturity date. The price you get for your bonds will reflect the loss of the past payments. Are Bo...
Explain why bonds retired before maturity may result in a gain or loss to the issuing company. Describe the types of bonds and how their sales price is determined. Why is it important to understand the bond market? What are the reasons you mig...
Why any business that issued bonds would want to 'call' the bonds before it matures?What are the two distinct obligations incurred by a corporation when issuing bonds?Explain why some bonds sell at a premium over par value while other bonds sell at a discount. What do...
Being long bonds, long gold, long commodities or short real estate would have been great investments in 2007. Later, I’ll talk about a few indicators you may use to predict when to allocate a larger percentage of your portfolio to these assets. If you don’t believe in market timing, ...
German government bonds have gone from strength to strength in recent times; much like the German team at the World Cup – I wish! But is the latest Bund rally sustainable? I think not. Let’s start with the bull case. In arecent blog,I described how Bunds had provided an efficient ...
“The saving bonds were sold out at around 9.30 a.m. yesterday,” according to the account managers at lenders in Beijing interviewed by Yicai. “Those who managed to buy the products had queued outside long before the bank opened.” Commercial bank branches in the Beijing area generally ope...
Pre-refunded, short-dated municipal bonds have Federal tax-equivalent yields of nearly 5%. If you are willing to lend money for longer (think ~10 years), you can achieve tax-equivalent yields of 8-10%. The only questions to really ask are: [1] are you willing to hold them to ...
Treasury bond yields continue to remain elevated at over 4%, which makes owning them a more decent alternative. Although, Treasury bonds don't have principal upside if held to maturity, unlike owning rental properties. Declining Cap Rates Are Likely A Long Term Trend ...
Since, in a health insurance plan, the insurance provider does not pay for the entirety of your yearly medical costs, you have to pay a certain portion of these costs from your pocket. The deductible is one of these out-of-pocket payments. Before your insurance kicks in, you must first ...