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cobalt426
cobalt426
27.06.2020 • 
Business

gdpra32ebb56570dc0cad02a781dde28fc78bfca4aeb003dd036304f532eade328c7gdpr What is the issuing date of this bond? 7-15-2055 7-15-2005 If the coupon interest rate is 4.375% for the first six months and changes to a rate equal to the 10-year Treasury bond rate plus 1.3% thereafter, the bond is called a bond. Which feature of a bond contract allows the issuer to redeem bonds under specified terms prior to maturity? Convertible provision Put provision Call provision Sinking fund provision Issuers can gradually reduce the outstanding balance of a bond issue by using a sinking fund account into which they deposit a specified amount of money each year. To operationalize the sinking fund provision of an indenture, issuers can (1) purchase a portion of the debt in the open market or (2) call the bonds if they contain a call provision. Under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures? When interest rates are higher than they were when the bonds were issued. When interest rates are lower than they were when the bonds were issued.

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