G ses.aplia.com/af/servl actionatake o CI Aplia: Student Question x AP M Convert
ID: 2496132 • Letter: G
Question
G ses.aplia.com/af/servl actionatake o CI Aplia: Student Question x AP M Convert Sel description in the Answer column next to the correct term. These are not necessarily complete definitions, b here is only one possible answer for each term Description Term Answer Callable bonds The term applied to bonds that are judged by their rating agency as being likely to pay their interest and maturity obligations B. Current yield The interest payment paid on a bond, calculated by multiplying the bond's interest rate by its face (par) value C. The name given to the return earned by an investor who purchases a Coupon bond for its market price, holds it until it matures, and receives all interest and the maturity payment in accordance with the terms contained in the indenture. Term loan A type of bond that allows the bond issue o retain the privilege of redeeming it at a pre-specified price at some o its norma me prio maturity date Yield to maturity An example of this bond was issued by Global-Chem three years ago pays a 4.25% coupon and is not collateralized in the event of financial distress Foreign debt F. An example of this type of bond is an airport construction bond in which he revenues generated via the airport landing s fees are used to service the interest payments and pay the maturity payments Yield to ca G. The portion of a bondholder's return that results from a bond's interest payment, calculated by dividing the bond's interest payment by its market value Debenture H. An example of this form of debt is issued by a German borrower, sold in the United States, and denominated in U.S. dollars Investment-grade I. The term describes the 13.7% return that would be earned by a bond bondholder who owns a bond purchased yesterday for $875, that pays interest payments of $40 every six months, has a call price of $1,080 and could be called four years from today. Revenue bond A loan, generally obtained from a bank o r insurance company, which on he borrower agrees to make a series of payments consisting of interest and principal Suggestions Session 59:41 8:29 PM 4/6/2016Explanation / Answer
Callable bonds- E
Current yield - G
Coupon - B
Term loan - J
Yield to maturity - C
Foreign debt- H
Yield to call -I
Debenture - D
Investment grade bonds - A
Revenue bond - F
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.