Explain the difference between the bond’s coupon interest rate with the current yield, and bondholder’s required rate of return. The coupon rate is the interest payment multiplied and gives the dollar value, the current yield is the interest on bonds subtracted unless deducted in the price to make themcompetitive, bond holders are the owners and the rate of return required to reinvest. Distinguish between debentures bonds and mortgage bonds.
Debentures bond-insured credit of a corporation and / or promise of payment of a corporation and they do not have collateral, are the most pay interest and because they have no collateral, are the safest and have the same buildings as collateral , residences or the shares of a company.
Define (a) eurobonds, (b) zero coupon bonds, and (c) junk bonds. Eurobonds-international bond issued outside of the country, zero-coupon bonds do not pay interest on the lifetime, are long term, more than ten years are called junk bonds-bb, high risk, high interest.
Why the dividends of preferred stock are paid before the dividends of common stocks? The common shares are owned by the owners of the company and preferred...