Question: T4 1) What determines whether bonds are issued at a discount, premium, or face value? 2) Why are callable and convertible bonds considered to add

T4

1) What determines whether bonds are issued at a discount, premium, or face value?

2) Why are callable and convertible bonds considered to add to management's future flexibility in financing a business?

3) How does a lender assess the risk that a borrower may default - that is, not pay interest and principal when due?

1) Why are most large companies established as corporations rather than as partnerships?

2) Why is treasury stock not considered and investment or an asset?

3) Why do many companies like to give stock options as compensation?

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