What is a bond sinking fund? What is the purpose of establishing a sinking fund? Are bonds that provide for a sinking fund regarded as being risker than those without this type of provision? Explain.

Q: Are securities that provide for a sinking fund more or less risky from the bondholder’sperspective…

A: The securities that are provided for a sinking fund are less risky from the perspective of…

Q: What are advantages of debt financing?

A: The advantage of debt financing: Ownership remains with the person itself as when the person agrees…

Q: A sinking fund call on a bond:

A: Sinking fund is a fund created by issuers which helps them in repaying the principal and interest…

Q: What is a mutual fund?

A: Mutual fund is pool of funds managed by professionally qualified fund managers who collect funds…

Q: Describe the issuer's rationale for using Convertible Bonds as a tool to raise funds.

A: Bonds are a form of loan or debt that is being issued by the organisation and on which regular…

Q: Why is the discount and premium on bond issues amortized?

A: The bonds can be issued at premium or discount on the basis of market rate of similar bonds.

Q: What are the risks of debt securities?

A: Debt securities: Debt securities can be described as a type of debt instrument that is purchased and…

Q: bonds

A: Municipal bonds that are issued by the respective city or local governments. These bonds are…

Q: What disclosures are required relative to long-term debtand sinking fund requirements?

A: Long-term debt is the amount owned by the company for a period of one year from the date of the…

Q: What is mutual fund? How mutual funds are sold?

A: Mutual funds are the group of many investments securities that consist of a portfolio of stocks,…

Q: A sinking fund can be set up in one of two ways. Discuss the advantagesand disadvantages of each…

A: Introduction: A sinking fund is a bond issuing provision that allows for the annual redemption of…

Q: How do mutual funds differ from UITFs?

A: Mutual Funds are constructed with the help of a pool of money that is collected from many investors…

Q: Are securities that provide for a sinking fund regarded as beingriskier than those without this type…

A: Introduction: A sinking fund is nothing but a set up by an economic institution by setting aside…

Q: Describe, compare, and contrast these types of investments: GICs, RRSPs, real estate, mutual funds,…

A: 1.  GICs  or Guaranteed Investment Certificate is a low risk investment as the rate of  return is…

Q: What are bond issue costs? What is an underwriter?

A: Bonds: Bonds are a kind of interest bearing notes payable, usually issued by companies, universities…

Q: What does it mean to amortize a bond premium or discount? Why is it necessary?

A: Introduction: A bond is a contract between the bond lender and the bondholders. The two most common…

Q: Explain in detail the mutual fund and it types.

A: A mutual fund is a type of financial vehicle made up of a pool of money collected from many…

Q: What are some major differences between a UITF and a Mutual Fund?

A: Unit Investment Trust Funds (UITFs) are professional-managed financial vehicles that can help you…

Q: Explain to King Solomon what call provisions and sinking fund provisions are and how these…

A: Call Provision: A contingent provision included in a bond indenture. It leads a bond issuer to a…

Q: An example of a capital market security would be: a bond a Treasury bill commercial paper a…

A: A bond refers to the debt instrument that is generally issued by corporations in order to raise debt…

Q: What is a sinking fund bond?

A:

Q: explain what is mutual funds

A: Mutual Fund an indirect vehicle for the investor investing in capital markets. It is an investment…

Q: What are the advantages and disadvantages of buying bonds mutual funds?

A: Bond Mutual Fund is a pool of funds of small investors, where the fund manager invest the money of…

Q: Is Collateralized debt obligation a good investment? Please explain in details.

A: A collateralized debt obligation also known as a CDO is a complex structured credit product which is…

Q: Which of the following types of investment carries the greatest risk? O Stocks O Bonds O Mutual…

A: Option Explanation Stock Iit is risky because it depends on movement of market. Bonds Bonds have…

Q: What is your introspection on how Equity & Debt Financing impacts one's view?

A: Debt Financing :Debt financing involves borrowing funds from investors by issuing corporate…

Q: What are redeemable and irredeemable bonds? Explain in single sentence please

A: Redeemable bonds are the bonds which are redeemed after fixed no. of years.

Q: Explain why municiple bonds are preferred by certain types of investors.

A: This question pertains to the fact that some sorts of investors prefer municipal bonds.

Q: What are the risks of investing in bonds? How can each type of risk be measured and managed?

A: There are many risks associated with investment, in case of bond the main risks are: 1) Interest…

Q: WHAT ARE THE CONCEPTS OF MUTUAL FUND?

A: A mutual fund is a trust that pools the savings of a number of  investors who share a common…

Q: Balanced funds, life-cycle funds, and asset allocation funds all invest in both the stock and bond…

A: Balanced funds are the funds that hold both stocks along with the bond. Asset allocation fund and…

Q: Explain the difference between subordinated debenture versus senior debt and also explain which one…

A: A debt is a sum of money lent by another group.

Q: Define each of the following terms:d. Call provision; redeemable bond; sinking fund

A: Call provision: A call provision is a condition on bond agreement or other static-income instruments…

Characteristics of Bonds