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Bonds
Essay specific features
Written by:
Anthony G
Date added:
September 20, 2015
Level:
University
Grade:
B
No of pages / words:
8 / 2074
Was viewed:
7978 times
Rating of current essay:
Essay content:
By dividing their debt into smaller pieces, corporations avoid having to find a single investor that is both willing and able to lend a large amount of money at a reasonable rate of interest.
A corporation that issues bonds is obligated to repay a stated amount, usually referred to as the face amount, at a specified maturity date...
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In addition, the corporation agrees to pay interest to bondholders between the issue date and maturity. The periodic interest is a stated percentage of the face amount and the payments are generally made semiannually on designated dates beginning six months after the bonds are issued.
All of the specific promises made to bondholders are described in a bond indenture...
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