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 agreements where company has to generate funds by selling assets, has to keep assets in good condition and has to regularly get the financial statements audited for compliance purposes.
This is a feature in a bond that allows the company to buy back the bond at a price that is decided. The period for using this provision is restricted though.
Bond refunding is when a company replaces a bond entirely or partially. Refunded bonds usually have a really good rating some cash is kept aside for safety by the issuer of bond.
Bond rating indicates the probability of a default risk that is attached to the bond. Companies are usually ready to pay for a good rating since bond rating is what attracts investors.
These are bonds that have a rating that is less than BB. These bonds do come with a high yield but also have a high default risk attached to them.
These bonds do not have a coupon payment attached to them which helps in evading taxes. These are also offered at a price that is lower than the par value.
