Why companies issue debt and bond?

July 7, 2024 No Comments

A: Companies issue bonds to finance operations. Most companies can borrow from banks, but view direct borrowing from a bank as more restrictive and expensive than selling debt on the open market through a bond issue. The costs involved in borrowing money directly from a

Why companies issue debt and bond?

July 8, 2024 No Comments

Why Do Commercial Bills Yield Higher Than T-Bills?

June 30, 2024 No Comments

A: Commercial bills are unsecured, short-term debt issued by a corporation, often times for the financing of short-term liabilities and inventory. Meanwhile, a Treasury bill (T-Bill) is short-term debt backed by the U.S. government with a maturity of under one year. Funds raised from selling T-Bills is intended to support

Why Do Commercial Bills Yield Higher Than T-Bills?

July 7, 2024 No Comments

Why Do Commercial Bills Yield Higher Than T-Bills?

July 7, 2024 No Comments

Why Do Companies Issue 100-Year Bonds?

June 30, 2024 No Comments

A: Although it is rare, companies and governments do issue bonds that exceed an average person’s life expectancy. For example, multi-billion dollar companies such as the Walt Disney Company (DIS) and Coca-Cola (KO) have issued 100-year bonds in the past. Many of these bonds and debentures

Why Do Companies Issue 100-Year Bonds?

July 7, 2024 No Comments

Why Do Companies Issue 100-Year Bonds?

July 7, 2024 No Comments

Why Do Companies Issue 100-Year Bonds?

July 8, 2024 No Comments

Why do interest rates have an inverse relationship with bond prices?

June 30, 2024 No Comments

A: At first glance, the inverse relationship between interest rates and bond prices seems somewhat illogical, but upon closer examination, it makes good sense. An easy way to grasp why bond prices move in the opposite direction as interest rates is to consider zero-coupon bonds,

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