Which of the following methods of retiring bonds before maturity is generally considered the most detrimental to the bondholders?
A call provision refers to a clause – essentially, an embedded option – in a bond purchase contract that gives the bond’s issuer the right to redeem the bond early, before its maturity date. Bonds with such provisions are referred to as callable bonds. Callable bonds usually offer higher yields than similar non-callable bonds to compensate investors for the risk of the bond being redeemed early, which will reduce the total amount of coupon payments (interest) that bondholders receive. The most common motivation for an issuer, including an early redemption option with a bond issue, is to be in a position to take advantage if prevailing interest rates decline significantly during the life of the bond which might not be very beneficial for bondholders as it poses them the reinvestment and interest rate risk
Which of the following is incorrect about role of Independent Directors?
A. They are expected to be independent from the management and act as th...
How is working capital finance calculated for Micro and Small Enterprises (MSEs) with working capital limits of up to Rupees five crore?
When producer bears the cost of tax, what is the impact on elasticity of demand and supply?
Who among the following can issue Certificate of Deposits to raise short term resources?
Consider the following Statements about National Commission for Backward Classes (NCBC) and choose the option with correct Statements.
I- The ...
Which type of operational risk event does tax evasion falls into Basel II?
What is the objective of the IFSCA Act?
Which of the following statements is/are true about the Bombay Stock Exchange (BSE)?
1)It is the oldest stock exchange in Asia.
2)It was e...
The Asian Development Bank (ADB) has approved a $295 million loan to widen and upgrade around 265 kilometers of state highways, improving transport conn...
Which entities are excluded from the scope of the Master Circular related to housing finance?