The issuance of bonds to raise capital for a corporation 6 Which of the following features allows a borrower to redeem or repurchase a bond issue before its maturity date? A. magnifies the returns to the stockholders. B. increases risk to the stockholders. C. is a cheaper form of capital than the issuance of common stock. D. all of the above. E. the call provision F. convertibility G. floating rate H. the priority of claims

Corporate bonds are A. held by the borrowers.B.assets for the investors.C.a source of income for the issuing company.D.issued by the investors.

A company issuing corporate bonds is utilizing which source of finance?Answer areaa) Equity financingd) Internal financingb) Short-term financingc) Debt financing

Corporate and structured bonds give the right to repayment, at maturity, of the principal subscribed (unless insolvency of the issuer)

Corporations choose to issue bonds for any of the following reasons, EXCEPTMultiple Choiceto improve financial leverage.to finance a corporations ongoing activities.to reduce the taxes to be paid to federal and provincial governments.if it is difficult to sell stocks.as an investment for their earnings.

Notes are:  A. Financial promises with a maturity of less than one year  B. Long-term debt securities  C. Ownership stakes in a company  D. Convertible securities