How is a corporate bond taxed?

July 8, 2024 No Comments

A: A corporate bond is taxed through the interest earned on the bond, through capital gains or losses earned in the early sale of the bond, and through an original issue discount. The aggregate taxes owed on each of these components adds up to equal

How is a debenture stock different from a regular debenture?

June 30, 2024 No Comments

A: Private businesses and governments sometimes issue debt securities to raise additional capital. These debt instruments are called debentures whenever they are not secured by any form of collateral. Debentures, which otherwise act much like any other kind of bond, are ostensibly only backed by

How is a debenture stock different from a regular debenture?

July 7, 2024 No Comments

How is a debenture stock different from a regular debenture?

July 7, 2024 No Comments

How is bond yield affected by monetary policy?

June 30, 2024 No Comments

A: Bond yields are significantly affected by monetary policy. Monetary policy at its core is about determining interest rates. In turn, interest rates define the risk-free rate of return. The risk-free rate of return has a large impact on the demand for all types of

How is bond yield affected by monetary policy?

July 7, 2024 No Comments

How is bond yield affected by monetary policy?

July 7, 2024 No Comments

How is bond yield affected by monetary policy?

July 8, 2024 No Comments

How is convertible bond valuation different than traditional bond valuation?

June 30, 2024 No Comments

A: Convertible bonds have features of equity securities since they can be conditionally converted into shares. This makes them more sensitive to company-specific news and less sensitive to systematic economic conditions, at least when compared with traditional bonds. The valuation of a convertible bond must

How is convertible bond valuation different than traditional bond valuation?

July 7, 2024 No Comments

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