Which of the following methods of retiring bonds before maturity is generally considered the most detrimental to the bondholders?
A bond call provision is a predefined condition on the bond that allows the issuer to retire or repurchase the debt security attached with the financial instrument. Numerous events can trigger a bond call provision, such as the underlying asset reaching a specific target price or a date. However, the most common is the falling market interest rates below the bond’s coupon rate. The bond call provision, when exercised, is referred to as ‘Calling of Bond’. When a bond is called, the issuer pays the accrued interest up to the date of recall and repays the principal amount invested by the bondholder at the time of purchase. The bond call provision is an optional clause on a bond and is pre-informed to the investors that it is callable along with the events that can trigger the calling of the bond. Investors find it risky that the issuer can call the bond anytime, and they would have to sell, reluctantly. Bondholders have to look for new bonds that may come at a considerably lower coupon rate than the current one they were holding.
The goal of the Insolvency and Bankruptcy code is to address insolvencies in a timely way; the evaluation and viability determination must be done with...
Assuming no change in other variables, which of the following would decrease Return on Assets?
As the number of stocks in a portfolio increases, the portfolio’s systematic risk:
A firm raises 1000000 by issuing common equity, which of the following financial statements will reflect the transactions?
A measure of how the returns of two risky assets move in relation to each other is the:
Which of the following is not an objective of a forward contract?
Which of the following elements cannot be a part of Directing?
What is the Additional Common Equity Tier 1 requirement as a percentage of Risk-Weighted Assets (RWAs) for SBI (as it’s a systemically important B...
Recently in November 2021 RBI came out with the Integrated Ombudsman Scheme 2021. This scheme is not applicable to which of the following?
In case the borrower fails to discharge his liability in full within the period specified in section 13(2) of SARFAESI ACT 2002, the secured creditor m...