Characteristics of Floating-rate notes
State the characteristics of the Floating-rate notes (FRNs) bond market instrument.
Expert
Floating-rate notes (FRNs) are medium-term bonds along with their coupon payments which are indexed to some reference rate. General reference rates are either three-month or six-month U.S. dollar LIBOR. Coupon payments on FRNs are typically quarterly or semi-annual, and in accord with the reference rate. 18. State the characteristics of the Convertible bond market instrument. Convertible bond issue permits the investor to exchange the bond for the pre-determined number of equity shares of issuer. Floor value of the convertible bond is its straight fixed-rate bond value. Convertibles normally sell at premium above the larger of their straight debt value and their conversion value. In addition, investors are usually willing in order to accept the lower coupon rate of interest than the comparable straight fixed coupon bond rate as they find call feature very attractive. Bonds with equity warrants are viewed as the straight fixed-rate bond with the addition of the call option (or warrant) feature. Warrant entitles the bondholder for purchasing the particular number of the equity shares in a issuer at the pre-stated price over the pre-determined time period.
In Modigliani-Miller equation, why is market value of the levered firm is more than the market value of an equivalent unlevered firm?
"Business term is the part of our Accounting". Illustrate this statement.
Why teaching of accounting is not simple. Illustrate this statement.
Liabilities mean the amount which the firm owes to the outsiders. Liabilities are of two types: -Long term liabilities & Short term liabilities. Examples of long term liabilities are long terms loans, bonds etc. & examples of short term liabil
What is the difference among personal or real account and nominal account?
What are Liability and Assets in Accounting equation. Also describe it with the help of formula.
The local public utilities commission has been charged with inspecting and reporting utility problems in the area. They have three electrical inspectors and two gas inspectors, each available for 40 hours , to analyze structures in their respective areas of expertise.
Assume that you are really interested in investing in the shares of Nokia Corporation of Finland that is a world leader in the wireless communication. However, before making the investment decision, you might like to learn about company. Take a look of the website of
What is Bond market and how it execute?
Explain what you mean by Correspondent bank relationship.
18,76,764
1945860 Asked
3,689
Active Tutors
1438507
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!