Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Describe the differences between foreign bonds and Eurobonds. Also discuss why Eurobonds make up the lions share of the international bond market.Answer: The two segments of the international bond market are: foreign bonds and Eurobonds. A foreign bond issue is one provided by a foreign borrower to investors in a national capital market and denominated in that currency of a nation. A Eurobond issue is one denominated in a certain currency, but sold to investors in national capital markets except the country that issues the denominating currency.
Eurobonds make up over 80% of the international bond market. The two main reasons for this stem from the fact which the U.S. dollar is the currency most often sought in international bond financing. First, Eurodollar bonds can be brought to market more rapidly as compared to the Yankee bonds because they are not provided to U.S. investors and so do not have to meet the strict SEC registration requirements.
Second, Eurobonds are commonly bearer bonds that provide anonymity to the owner and so allow a means for evading taxes on the interest received. Due to this feature, investors are generally willing to recognize a lower yield on Eurodollar bonds in comparison to registered Yankee bonds of comparable terms, in which ownership is recorded. For borrowers the lower yield means a lower cost of debt service.
Compare diversifiable and nondiversifiable risk. Which do you think is more important to financial managers in business firms? Diversifiable risk is able to be dealt with by of
Q. Explain the three kind’s non-financial incentives? Non-Financial incentives: Incentives which cannot be offered in terms of money are known as non-¬financial incentives. Ind
Q. Explain Dividend Policy Decision? Dividend Policy Decision: - The financial management has to make a decision as which portion of the profits is to be distributed as dividen
Value of a Warrant: The market price of a warrant fluctuates between minimum and maximum limits. When the current market price of the stock Ps is greater than the exercise pri
Leveraged Buyouts (LBOs) A leveraged buyout is a financing technique where debt is used to purchase the stock of a corporation and it frequently involves taking a public compan
fixation of selling price
Example: - Two firm U as well as L is identical in every respect except that U is unlevered and L is levered. L has Rs. 20Lakh of 8% debt outstanding. The net operating income of b
Q. Show the Compound Value of the Single Flow ? Compound Value of the Single Flow (Lump Sum):- The process of computing future value becomes very cumbersome if they have to be
Woody Construction is considering a new 3-year expansion project that requires an initial fixed asset investment of $3.186 million. The fixed asset will be depreciated straight-lin
Significance of cost of capital
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd