Why are convertible bonds less risky than stock but usually more risky than nonconvertible bonds? Explain why some companies that issue bonds engage in currency swaps. Why do they not simply issue bonds in the currency that they would prefer to use for making payments? Why should inve...
Explain why bonds don't always sell at their face value. Why would they sell for more or less than their face value? Explain terms bonds and serial bonds. Why might a business invest in another company's stock? 1) Why are most large companies established as corporations rather than as pa...
If you availed of a healthcare service covered by your insurance and got billed $800, the amount you’re supposed to pay for coinsurance would only be $160, while the health insurance would be responsible for paying the remaining $640. However, it’s not always the case that you...
Professor: In that case, could the governments buy the asset back? Well, to do that, it would have to raise money either by raising taxes or by selling bonds, both of which are politically sensitive. So it's unclear in a practical sense whether these deals are truly reversible....
During the course of dinner, I idly asked Fridman if he would ever sell Alfa. “Of course!” he immediately replied. “If the price was right. And it would have to be a very good price.”Fridman is laser-focused on making profits. He famously got his start in busi...
In order to meet the demands of the market, you would need to sell the bonds at a discount This is because the 4% coupon rate on the bonds is fixed, so you’d need to sell the bonds for less than you originally paid Example 2: Bond Yield Goes DOWN ...
The Central Government is allowing all provincial governments to issue local bonds to help finance the construction of public welfare facilities. But so far investors haven't shown much interest in the bonds-the first of their kind to be issued in China. Ni Xiaolin, a senior commentator at Xin...
This measure would be useful when a business needs to know its immediate liquidity, especially in times of economic uncertainty when converting inventory to cash would take more time and effort. How to calculate working capital To calculate your working capital, you’ll need to know what your cu...
which would be unattractive to investors who can buy bonds that pay $120 as interest rates have risen. To sell the original $1000 bond, the price can be lowered so that the coupon payments and maturity value equal a yield of 12%. ...
If the entity issuing the bond didn't pay back its investors the bond's principal amount, it would be considered in default, or nonpayment, of the bond. The risk that a company or government might not pay back the principal amount of a bond is calleddefault risk.3 ...