--%>
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 : Low-discrepancy sequence or quasi

    Who proposed definition and development of low-discrepancy sequence theory or quasi random number theory?

    		•
  • Q : Profitability Ratios Profitability

    Profitability Ratios: These ratios comprise the Gross profit Margin, Net profit Margin, Operating Margin, Return on Equity (ROE), and Return on Total Assets. Such ratios help the firm to examine its profitability, the trend in profits and aid to take

    		•
  • Q : Who explained market-neutral delta

    Who explained market-neutral delta hedging?

    		•
  • Q : How you can predict future evolution of

    Could we suppose that, as we cannot predict the future evolution of the value of shares, a good estimation would be to consider this constant during the next five years?

    		•
  • Q : Define Strong form market efficiency

    Strong form market efficiency: Strong form market efficiency defines that the price of a security in the market replicates all information—public and also private or within information. Strong form efficiency

    		•
  • Q : Overview of capital market efficiency

    Provide a brief overview of Capital Market Efficiency?

    		•
  • Q : Which data is the most suitable for

    Which data is the most suitable for finding betas?

    		•
  • Q : Operational efficiency and

    Distinguish between Operational efficiency and informational efficiency?

    		•
  • 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 : Does value of the company increase when

    According to the valuation method depends on tax shields, the value of the company (Vl) is the value of the unleveraged company (Vu) in addition with the value of tax shields (VTS), thus, the higher the interest and the higher the VTS. Therefore, does

    		•