It is a long-term debt instrument issued by the company to raise the financial resources from the market, for specific period and it carries fixed rate of interest which has its own salient features
Type of Bonds
The further more classification of bonds are available. They are following:
Zero Coupon bonds: These bonds are sold at discounted value and will be given at the face value after the maturity period.
Deep discount bonds: It is another kind of zero coupon bond. Large discount is made on their nominal value. Interest is paid only at the time of maturity -3-25 years.
Pay in kind bonds: This another kind of long-term instrument of raising funds. During the First three years, these bonds need not pay any interest to the holders of the bonds, in stead the interest bonds are issued which are known as additional bonds. These additional bonds are called as baby bonds or kid bonds which are derived out of the parent bond. It is identified by the many of the companies as wonderful instrument to raise the capital from the market at the early stage of commencement of business.
The next type long-term instrument is that Warrants.
Accounts and Finance for Managers Related Tutorials
Accounts And Finance For Managers Tutorial
Financial Statement Analysis
Fund Flow Statement Analysis
Cash Flow Statement Analysis
Cost Accounting & Preparation Of Cost Statement
Time Value Of Money
Sources Of Long Term Finance
Capital Market Developments In India
Indian Financial System
Sebi In Capital Market Issues
Risk And Return
Cost Of Capital
Capital Structure Theories
Working Capital Management
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