Question
 Which of the following methods of redeeming the bonds
before maturity is generally considered the most detrimental for bondholders?Solution
The call provision gives the issuer the right to purchase the bonds at a given price, which the issuer would not do unless that price was below the market price. This is detrimental for bondholders as they will get call price as a redemption price and will face reinvestment risk as they will have to invest their proceedings at a lower rate.
Which Indian port is now the only permitted entry point for jute imports from Bangladesh?
In October 2020, the world's longest highway tunnel was inaugurated in the state of
WPI Inflation Index is released by?
How many information commissions in India are reported to be completely defunct according to the report by Satark Nagrik Sangathan?
According to the survey by credit rating agency S&P Global, Purchasing Managers' Index (PMI) declined marginally to____Â in May from its 13-year high o...
Which Indian player has broken the national and Asian records in shot-put?
Which ministry is partnering with the French Development Agency (AFD), Kreditanstalt für Wiederaufbau, European Union, and National Institute of Urban ...
Who was named as the captain of the ICC Men's ODI team of the year in the ICC Awards 2023?
Which river is known as “sorrow of China”?
Who chaired the National Conference on Promotion of Seaweed Cultivation, and where did it take place?
