Corporate Finance - Bonds Issue H.W
Please find the attachment, you may use this book for help (Chapter 6) Ross, Stephen A, Westerfield, Randolph W., and Jordan, Bradford F., Essentials of Corporate Finance, 7th edition, McGraw-Hill Irwin, 2008 ISBN 978-0-07-338246-3
Name:Instructor:Course:Date:Bonds IssueCorporate organization use security portfolios to represent collaterals. Using repurchasing agreements, the company can sell the bonds with an agreement to buy them back at a price agreed upon by the parties.Seniority of the bonds refers to the repayment order of the bonds in case of making a sale or going bankrupt. It can be in the form of preferred stock or debt. The main advantage of these bonds is that they get the first consideration in case the company goes under and is not in a position to pay all its debts. Sinking funds are monies set aside by companies that can be used to buy back bonds at the preferred time. To the investors, sinking funds make the bonds of a company more attractive as the chances of defaulting...