Podcast
Questions and Answers
What is the purpose of the issue price of a bond?
What is the purpose of the issue price of a bond?
- To decide whether the bond is callable
- To set the bond's maturity date
- To indicate the original sale price of the bond (correct)
- To determine the bond's coupon rate
What is the main difference between secured and unsecured bonds?
What is the main difference between secured and unsecured bonds?
- The interest rate offered
- The issuer's credit rating
- The collateral backing the bond (correct)
- The bond's maturity date
What is the benefit of a callable bond to the issuer?
What is the benefit of a callable bond to the issuer?
- The guarantee of a specific return on investment
- The ability to change the bond's coupon rate
- The ability to issue more bonds
- The option to pay off the bond early at a premium (correct)
What is the primary advantage of secured bonds over unsecured bonds?
What is the primary advantage of secured bonds over unsecured bonds?
What is a mortgaged-backed security an example of?
What is a mortgaged-backed security an example of?
Why might an issuer choose to call its bonds?
Why might an issuer choose to call its bonds?
What type of bond is secured by a mortgage on real properties?
What type of bond is secured by a mortgage on real properties?
Which type of bond does not have collateral security?
Which type of bond does not have collateral security?
What type of bond can be exchanged for shares of the issuing entity?
What type of bond can be exchanged for shares of the issuing entity?
Which type of bond has a single date of maturity?
Which type of bond has a single date of maturity?
What type of bond is unregistered in the sense that the name of the bondholder is not recorded on the company books?
What type of bond is unregistered in the sense that the name of the bondholder is not recorded on the company books?
Which type of bond has a series of maturity dates instead of a single one?
Which type of bond has a series of maturity dates instead of a single one?
Why do companies issue debt instead of equity?
Why do companies issue debt instead of equity?
What is the main characteristic of public bonds?
What is the main characteristic of public bonds?
What is the obligation of the issuer in a bond issue?
What is the obligation of the issuer in a bond issue?
How often are interest payments usually made on bonds?
How often are interest payments usually made on bonds?
What is the term used to describe the public debt market based on the issue's maturity?
What is the term used to describe the public debt market based on the issue's maturity?
What is the main difference between notes and bonds?
What is the main difference between notes and bonds?
