Graded Assignment Read Chapter 71 Back to Assignment Due Monday 03.04.19 at 11:00 PM Keep the Highest: Attempts: 9. More on types of bonds You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the A Aa type of bond based on each description given in the table that follows: Description Type of Bond These bonds are backed by real estate holdings and equipment, and if a company goes bankrupt, the collateral can be sold off to compensate for the default. These bonds, more so than other collateralized securities, have prior claims over assets These bonds are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company These bonds have a claim on assets only after senior debt has been paid in full Based on your understanding of bond ratings and bond-rating critenia, which of the folliowing statements is true? O An indenture is a legal document that details the rights of bondholders. If the indenture includes a sinking indenture is a legal document that details the rights of bondholders If the indenture includes a sinking funds provision, the bond will have less default risk funds provision, the bond will have move defauit risk In 2008, the United States bubble in 2006 led to and financial entties. Severe liquidity shortals in the United States as credit crisis. During the credt crisis of 2008-2009, recrganization process or were forced to liquidate. Consider the folowing example began to witness one of the worst recessions since the 1930s. The collapse of the housing in real estate prices, affecting consumers and institutions, especialily banking well as other global markets led to a serious a massive dedline several banks and other businesses went through a In May 2009, General Motors started closing 2,600 of its retail outlets and finally filed for bankruptcy in June. t emerged from the bankruptcy protection by July 2009, after it received funding from the U.S. government, the Canadian government, United Automobile Workers Union, and GM bondholders 11 Bankruptcy Overview and Detais About.com, Retal Industry. About.com, nd Web. Avgut 312030 This is an e 9-22 Graded Assignment Read Chapter 71 Back to Assignment Due Monday 03.04.19 at 11:00 PM Keep the Highest: Attempts: 9. More on types of bonds You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the A Aa type of bond based on each description given in the table that follows: Description Type of Bond These bonds are backed by real estate holdings and equipment, and if a company goes bankrupt, the collateral can be sold off to compensate for the default. These bonds, more so than other collateralized securities, have prior claims over assets These bonds are not backed by any physical collateral. They are backed by the reputation and creditworthiness of the issuing company These bonds have a claim on assets only after senior debt has been paid in full Based on your understanding of bond ratings and bond-rating critenia, which of the folliowing statements is true? O An indenture is a legal document that details the rights of bondholders. If the indenture includes a sinking indenture is a legal document that details the rights of bondholders If the indenture includes a sinking funds provision, the bond will have less default risk funds provision, the bond will have move defauit risk In 2008, the United States bubble in 2006 led to and financial entties. Severe liquidity shortals in the United States as credit crisis. During the credt crisis of 2008-2009, recrganization process or were forced to liquidate. Consider the folowing example began to witness one of the worst recessions since the 1930s. The collapse of the housing in real estate prices, affecting consumers and institutions, especialily banking well as other global markets led to a serious a massive dedline several banks and other businesses went through a In May 2009, General Motors started closing 2,600 of its retail outlets and finally filed for bankruptcy in June. t emerged from the bankruptcy protection by July 2009, after it received funding from the U.S. government, the Canadian government, United Automobile Workers Union, and GM bondholders 11 Bankruptcy Overview and Detais About.com, Retal Industry. About.com, nd Web. Avgut 312030 This is an e 9-22