--%>

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 : Profit in perfect competition leads to

    An increase within demand for "green-certified" products will ________ a firm's economic profit, and the raise within costs to have a product certified like "green" will ________ a firm's economic profit: w) increase; increase x) increase; decrease y)

  • Q : Cooperative and non-cooperative outcome

    Question: Cineplex and AMC are two rival movie theatre chains. They must each decide whether to set an admission price of $10 or set an admission price of $12; of course, the number of movie goers (and thus their r

  • Q : Describe Low financial leverage and low

    Describe briefly Low financial leverage, low operating leverage?

  • Q : Problem related to market circular flows

    In output markets, the simple circular flow model, households replace their _________ for _________. Can someone help me in determining the right answer from the given options. (1) Resources | income. (2) Labor | g

  • Q : Labour economic Can someone help me in

    Can someone help me in finding out the right answer from the given options. The Taft Hartley Act of 1946 made it illegal to encompass a: (1) Right-to-work law passed by the state legislature. (2) Conviction for the misdemeanor and serve as union officer. (3) Union for the agricultural migrants or go

  • Q : Wealth of Nations academic

    By the perspective of nowadays academic standards, Adam Smith must have more evidently acknowledged that several the analyses and insights for that he took credit within his Wealth of Nations had really been gleaned from the writings

  • Q : Entertainment tax-Indirect tax Why

    Why entertainment tax comes in indirect tax? Answer: Since its burden can be shifted to others.

  • Q : What do you mean by inflation What do

    What do you mean by inflation

  • Q : Government policies with respect to the

    Can you explain how different government policies with respect to the recycling of aluminum and paper might account for these different market outcomes?

  • Q : Type of expenditure at the local level

    What is the most important source of revenue and the major type of expenditure at the local level?