to find a similar rate on a new bond—or even one equal to the current market rate when they buy their callable bond—if their bond is called. Callable bonds often have guidelines governing how soon they can be recalled and if the issuer must pay a premium on the principal if they do...
most callable bonds work exactly like any other investment-grade bond. That is to say, these bonds carry an interest rate, par value and maturity date, and will pay coupon payments based on these variables.
bondholders. During the first few years that a call is permitted, the premium is generally equal to one year's interest. Depending on the terms of the bond agreement, the call premium gradually declines as the current date approaches the maturity date. At maturity, the call premium is zero...
A surety bond (pronounced “shoo-ruh-tee”) is a legally binding agreement involving three parties—the Principal, the Obligee, and the Surety. In this agreement, the Surety provides a financial guarantee to the Obligee if the Principal defaults on their obligations, such as not being able ...
A bond is a loan taken by the company or business. Instead of traditionally going to a bank, the company gets the money from investors who buy the companies bonds. In return for the capital, the company pays an interest coupon. The annual interest rate is paid on a bond, which is expr...
A bond is a fixed-income security that reflects a lender's debt to a borrower, and it is basically of two types: corporate bonds and government bonds...Become a member and unlock all Study Answers Start today. Try it now Create an account Ask a question Our ex...
Answer to: What is a zero coupon bond? How is it valued? Is it ever a "premium bond"? Why is a zero coupon bond also known as a pure discount bond...
Most often, it's done by requiring the one hired to obtain a performance bond. For anyone seeking work in the construction industry, it's crucial to understand how this common type of surety bond works and why it is critical to your business. Viking Bond Service is here to break it ...
You pay a fee to purchase a call option, called the premium; this per-share charge is the maximum you can lose on a call option. Call options may be purchased for speculation or sold for income purposes, or tax management. Call options may also be combined for use in spread or combinat...
What is an ETF? An ETF is a tradeable fund, containing many investments, generally organized around a strategy, theme, or exposure. That approach could be tracking a sector of the stock market, like technology or energy; investing in a specific type of bond, like high-yield or municipal;...