--%>
Assignment Help - homework help

Vanilla Bonds-Corporate Bonds

Define the term Vanilla Bonds regarding Corporate Bonds?

E

Expert

Verified

Vanilla Bonds:

• Such bonds have coupon payments which are fixed for the life of bond, and at maturity, the principal is remunerated and the bonds are retired.

• Vanilla bonds contain no special provisions, and the provisions they do contain are conventional and general to most bonds, like a call provision.

• Payments are generally made annually or semiannually.

• The face value, or par value, for most corporate bonds is of $1,000.

• The bond’s coupon rate is computed as the annual coupon payment (C) divided by the bond’s face value (F).

   Related Questions in Corporate Finance

  • Q : Long-Term Debt What are Long-Term Debt

    What are Long-Term Debt and what are their main parts.

    		•
  • Q : Explain influences of financial

    Does financial leverage (i.e. debt) have any influence on the Free Cash Flow, upon the Cash Flow to Shareholders, upon the growth of the company and upon the value of the shares?

    		•
  • Q : State Exploitation of favorable market

    Exploitation of favorable market conditions: The firms after estimating WCR are in a position to clearly identify their status of excess current assets. After this realization they can use this knowledge to encash conditions arising in market even for

    		•
  • Q : Problem on rules of the International

    RainFlower Trading Limited is a wholesaler of electronic calculators in Hong Kong. It has been importing goods from a Philippine manufacturer for eight years. The Philippine manufacturer had accepted payments in advance in the past. Recently, because of political turm

    		•
  • Q : Who were the creators of uncertain

    Who were the creators of uncertain volatility model?

    		•
  • Q : How present value of tax shields be

    I have two valuations of the company that we set as an objective. Within one of them, the present value of tax shields (D Kd T) computed using Ku (required return to unlevered equity) and, in one, by using Kd (required return to debt). The second valuation is too high

    		•
  • Q : Explain exotic option-value of option

    Explain exotic option’s value of option pricing method.

    		•
  • Q : Problem on optimal capital structure

    XYZ Company has debt/assets ratio 50%, that is too high and it must be at 45% to be optimal. This debt reduction must also reduce the bankruptcy costs by $30 million. At present, XYZ has 5 million shares of common stock selling at $50 each. The tax rate of XYZ is 30%.

    		•
  • Q : Working Capital - Current Assets and

    I do not know the meaning of Working Capital Requirements. I think this should be same to Working Capital (Current Assets – Current Liabilities). There am I right?

    		•
  • Q : Explain the way of estimating an average

    Explain the way of estimating an average.

    		•