Explain about the non-convertible debentures, Financial Management

Assignment Help:

Expalin about the Non-Convertible Debentures (NCDs)

NCDs are plain debenture securities issued by corporations. They are normally medium term in nature, maturing between 1 to 8 years and usually have a repayment schedule staggered over two to three years. They are secured by a collateral backing and credit rated. Interest rate offered on medium term NCDs is generally lower than market rate so many times the companies offer a sop of equity warrants along with NCDs to sweeten the issue.  Interest rate on the short term NCDs is in line with market rate and depends upon the quality of the issuer.

 


Related Discussions:- Explain about the non-convertible debentures

Frankfurt stock exchange, Frankfurt Stock Exchange The roots of the Fran...

Frankfurt Stock Exchange The roots of the Frankfurt Stock Exchange may be traced back to the period of medieval fairs. As early as the middle of the ninth century, Emperor Ludwi

Definition of financial management, Q. Definition of Financial Management? ...

Q. Definition of Financial Management? As-per to Joseph L. Massie 'Financial management is the operational activity of a business that is responsible for obtaining as well as e

Beta, what is the value of beta for this fund ? If the benchmark index for ...

what is the value of beta for this fund ? If the benchmark index for this mutual fund increased by 11.00% during the period covered by beta measure, what was the rate of return for

Calculate average amount of working capital required, X & Y is desirous to ...

X & Y is desirous to purchase a business and has consulted you, and one point on which you are asked to advice them, is the average amount of working capital which will be required

What is over capitalization, Question 1 What is over capitalization? How d...

Question 1 What is over capitalization? How do we know over capitalization has occurred? Question 2 Explain permanent and temporary working capital Question 3 A. What ar

Determine the method of credit rating, Determine the method of Credit Ratin...

Determine the method of Credit Rating It is obligatory for the issuing companies to get credit rating done on debt securities issues. Credit ratings are also required for Comme

Determine the no-arbitrage price, 1.  Suppose Bank one offers a risk free i...

1.  Suppose Bank one offers a risk free interest rate of 5.5% on both savings and loans, and Bank Enn offers a risk free interest rate of 6% on both savings and loans. What arbitra

Project, AThe project is expected to have an initial outlay of $200million ...

AThe project is expected to have an initial outlay of $200million and generate cash inflows of $64million for the next 12 yearssk question #Minimum 100 words accepted#

Factors affecting working capital needs of firms, FACTORS AFFECTING WORKING...

FACTORS AFFECTING WORKING CAPITAL NEEDS OF FIRMS A large no. of reasons influences the working capital requirements of firms.  a number of them are as follows: 1. Nature of

Role of interest groups in public policy making, Question 1: Explain cl...

Question 1: Explain clearly why "Public Policy Making constitutes a major part of the work of the Government. Question 2: Consider the role of interest groups in public

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd