Category: Education
Created by: SingleWriter
Number of Blossarys: 3
English (EN)These are the agreements where a company can only pay a restricted amount of dividend, is not supposed to sell the senior debt first or use refunding as a tool to take new debt with low interest ...
These are used to safeguard the rights and interests of the bond holders. It is an added promise in the indenture that restricts behavior of the company regarding financial contracting.
Sinking funds have a feature of repayment every year. It is considered secure, but it does come with a risk of calls that turn out to be unfavorable.
These are those bonds that are issued at the same date and have a similar maturity date as well. Term bonds that have a call provision written in the indenture can be redeemed earlier than the other ...
This is a bond issue that matures in intervals, but evenly. Serial bonds are used by those companies that expect regular cash inflows in the future since it helps in principal repayments at maturity.
It is the process through which a bond is issued. The method is quite similar to that of public issue of stock, but in a public issue of bond an indenture is essential.
Indenture basically lists the features of a bond. It consists of the par value of the bond, amount and date of issue, and maturity of the bond. It also has details regarding coupon payments and other ...
