What does investment grade mean?

July 7, 2024 No Comments

A: Credit ratings provide a useful measure for comparing fixed-income securities, such as bonds, bills and notes. Most companies are issued a rating based on their financial strength, future prospects and past history. Companies that have manageable levels of debt, good earnings potential and a

What does it mean if a bond has a zero coupon rate?

June 30, 2024 No Comments

A: A bond’s coupon rate is the percentage of its face value payable as interest each year. A bond with a coupon rate of zero, therefore, is one that pays no interest. However, this does not mean the bond yields no profit. Instead, a zero

What does it mean if a bond has a zero coupon rate?

July 7, 2024 No Comments

What does it mean if a bond has a zero coupon rate?

July 7, 2024 No Comments

What does it mean if a bond has a zero coupon rate?

July 8, 2024 No Comments

What does it mean when a bond has a put option?

June 30, 2024 No Comments

A: A put option on a bond is a provision that allows the holder of the bond the right to force the issuer to pay back the principal on the bond. A put option gives the bond holder the ability to receive the principal of

What does it mean when a bond has a put option?

July 7, 2024 No Comments

What does it mean when a bond has a put option?

July 7, 2024 No Comments

What Does It Mean When a Bond Has a Sinking Fund?

June 30, 2024 No Comments

A: A sinking fund is a means of repaying funds borrowed through a bond issue through periodic payments to a trustee who retires part of the issue by purchasing the bonds in the open market. This provision is really just a pool of money set aside by

What Does It Mean When a Bond Has a Sinking Fund?

July 7, 2024 No Comments

All Rights Reserved