Which of the following methods of retiring bonds before maturity is generally considered the most detrimental to the bondholders?
A bond call provision is a predefined condition on the bond that allows the issuer to retire or repurchase the debt security attached with the financial instrument. Numerous events can trigger a bond call provision, such as the underlying asset reaching a specific target price or a date. However, the most common is the falling market interest rates below the bond’s coupon rate. The bond call provision, when exercised, is referred to as ‘Calling of Bond’. When a bond is called, the issuer pays the accrued interest up to the date of recall and repays the principal amount invested by the bondholder at the time of purchase. The bond call provision is an optional clause on a bond and is pre-informed to the investors that it is callable along with the events that can trigger the calling of the bond. Investors find it risky that the issuer can call the bond anytime, and they would have to sell, reluctantly. Bondholders have to look for new bonds that may come at a considerably lower coupon rate than the current one they were holding.
What is the chemical name of Vitamin B5 ?
Which city in the U.S became the first to ban caste discrimination?
Foramen Magnum is an aperture of
DNA fingerprinting is a technique used for the detection of:
Fermentation is a
Malaria is caused by
Which of the following disease is caused by the deficiency of iodine in food?
Skin, Intestine and Glands are the example of :
The maintenance of Human blood Pressure is an example of
Due to the presence of _________ , Blood does not coagulate inside the body.