Assignment: Corporate Bonds
Based on the information presented in the YouTube video "What Are Corporate Bonds and How Do They Work?" or post brief responses to the following requirements:
i. Explain why companies issue corporate bonds.
ii. Explain where the accountant would find the terms and conditions of a company's bond issue.
iii. Explain the interest an investor would have in buying equity (common stock) in a company vs the interest a bondholder would have in buying a company's bond.
iv. List and explain the three types of bond issues.
v. List 2 commonly known bond credit rating agencies.
vi. What instrument acts as the bond agreement?
vii. Bond issues are typically issued in what denomination? How about "Baby Bonds"?
viii. Explain what is meant by the Face Value of a bond? Face Value is also referred to as by lenders?
ix. Interest payments are typically paid how frequently to bondholders? (2 pts)
x. What 3 sources are available for accountants to use to get a bond issue's interest payment schedule?
Format your assignment according to the following formatting requirements:
i) The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
ii) The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
iii) Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.