What appeal do bonds hold for investors? Give several reasons why bonds make attractive investment outlets. behavior of bonds? Explain. is the central idea behind securitization?
Answer to relevant QuestionsBriefly describe each of the following types of bonds: (a) Treasury bonds, (b) Agency issues, (c) Municipal securities, and (d) Corporate bonds. Note some of the major advantages and disadvantages of each. What is a convertible debenture? How does a convertible bond differ from a convertible preferred? What is the difference between a call feature and a sinking-fund provision? Briefly describe the 3 types of call features. Can a bond be freely callable but nonrefundable? Select the security in the left-hand column that best fits the investor’s desire described in the right-hand column. A certain convertible bond has a conversion ratio of 21 and a conversion premium of 20%. The current market price of the underlying common stock is $40. What is the bond’s conversion equivalent?
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