--%>

Describe the duty of bondholders in a bond

Describe the duty of bondholders in a bond?

E

Expert

Verified

1. Bondholder is only a lender not an owner.

2. Because of certain factors usually Bonds are less risky.

a. Before stockholder dividends are intended bondholders can take interest payments.

b. Dividends depend on profits whereby interest is definite as long as company is vigorous.

   Related Questions in Business Economics

  • Q : Determine opportunity costs while

    Marrying the one you love involves opportunity costs, mainly since: (i) being married limits your freedom to marry someone else, and you should also consider making someone else happy while making decisions which affect both of you. (ii) two can live

  • Q : Illustrate major economic flows that

    Illustrate major economic flows that link U.S. with nations.  Provide an example to illustrate each flow.  Explain the relationship between the top and bottom flows.

  • Q : Assertion to increase in the minimum

    Use the circular flow model to confirm this assertion for a $1 per hour increase in the minimum wage?

  • Q : How do households dispose of their

    How do households dispose of their income?

  • Q : Effects of that depreciation or

    Would a decline in U.S. consumer income or a weakening of U.S. preferences for foreign products cause the dollar to depreciate or appreciate?  Other things equal, what would be the effects of that depreciation or appreciation on U.S. exports and imports?

  • Q : Increase in spending for space research

    Use the circular flow model to confirm this assertion for $50 million increase in spending for space research?

  • Q : Maximizes profits in a perfectly

    Which of the given is not true for a firm within perfect competition: w) Profit equivalents total revenue minus total cost. x) Price equivalents average revenue. y) Average revenue is greater than marginal revenue. z) Marginal revenue equivalents the

  • Q : Perfectly competitive market and its

    Which of the given is not a characteristic of a perfectly competitive market structure: w) there are a very huge number of firms which are small compared to the market. x) All firms sell the same products. y) There are no restrictions to entry through

  • Q : When are transaction costs to ultimate

    Transaction costs to ultimate consumers are reduced if: (w) consumers travel long distances to buy directly from manufacturers quite than buying the goods at local retail stores. (x) intermediaries generate income while conveying goods from manufactur

  • Q : Describe the equation of a linear

    Describe the equation of a linear relationship?