This topic contains a solution. Click here to go to the answer

Author Question: Describe corporate bonds. What affects the interest rate paid by a ... (Read 46 times)

Sufayan.ah

  • Hero Member
  • *****
  • Posts: 512
Describe corporate bonds. What affects the interest rate paid by a corporation?

Question 2

The logical outcome of the assumptions underlying Theory X is a highly controlled work situation in which managers make all decisions and workers carry them out.
 
 Indicate whether the statement is true or false



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

kjo;oj

  • Sr. Member
  • ****
  • Posts: 328
Answer to Question 1

A corporate bond is a corporation's written pledge that it will repay a specified amount of money with interest. The interest rate is affected by the financial health of the company issuing the bonds. Specific factors that affect the interest rate are the corporation's ability to pay interest each year until maturity and the ability to repay the bond at maturity. For bond investors, the interest rate on corporate bonds is an example of the risk-return ratio discussed earlier in this chapter. Simply put, investors expect more interest if there is more risk with more speculative bond issues. The maturity date is the date on which the corporation will repay the borrowed money. For most corporate bonds, maturity dates range from 10 to 30 years.

Answer to Question 2

True




Sufayan.ah

  • Member
  • Posts: 512
Reply 2 on: Jul 14, 2018
Gracias!


softEldritch

  • Member
  • Posts: 334
Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

Did you know?

All adults should have their cholesterol levels checked once every 5 years. During 2009–2010, 69.4% of Americans age 20 and older reported having their cholesterol checked within the last five years.

Did you know?

Nearly 31 million adults in America have a total cholesterol level that is more than 240 mg per dL.

Did you know?

Approximately 25% of all reported medication errors result from some kind of name confusion.

Did you know?

Nitroglycerin is used to alleviate various heart-related conditions, and it is also the chief component of dynamite (but mixed in a solid clay base to stabilize it).

Did you know?

The effects of organophosphate poisoning are referred to by using the abbreviations “SLUD” or “SLUDGE,” It stands for: salivation, lacrimation, urination, defecation, GI upset, and emesis.

For a complete list of videos, visit our video library