Accounting Tools

FEBRUARY 5, 2024

What is a Collateral Trust Bond? A collateral trust bond is a bond that is secured by the issuer 's own security investments. These investments are deposited with a trustee, who holds them on behalf of the bond holders.

Corporate Finance 40

Corporate Finance Deposits 40

Accounting Tools

JANUARY 30, 2024

What is a Floorless Bond? A floorless bond is a bond whose terms allow purchasers to convert them to common stock , as well as any accrued interest. Terms Similar to Floorless Bond A floorless bond is also known as a toxic convertible bond or a death spiral convertible bond.

Corporate Finance 40

Corporate Finance 40

Accounting Tools

JULY 20, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is a Variable Rate Bond? A variable rate bond is a bond whose stated interest rate varies as a percentage of a baseline indicator, such as the prime rate.

Corporate Finance 40

Corporate Finance 40

Accounting Tools

JULY 14, 2023

Related Courses Corporate Cash Management Corporate Finance Investing Guidebook What are the Main Types of Bonds? There are many types of bonds that can be issued, each of which is tailored to the specific needs of either the issuer or investors. Conversely, a high stated interest rate can lead investors to pay a premium for a bond.

Corporate Finance 40

Corporate Finance Accounting Accounting 40

Accounting Tools

OCTOBER 14, 2023

Related Courses Corporate Cash Management Corporate Finance Treasurer's Guidebook What is a Secured Bond? A secured bond is a debt instrument that is backed by collateral. If the issuer defaults on bond payments, this means that title to the underlying assets will be passed to the bond holders.

Corporate Finance 40

Corporate Finance 40

Accounting Tools

JULY 27, 2023

For example, an issuer of bonds can obtain insurance or a surety bond from a third party that guarantees payment of the bonds. Other options are for the borrower to provide additional collateral to the lender , or to set aside cash in a sinking fund that is reserved for the eventual retirement of any bonds issued.

Corporate Finance 40

Corporate Finance Collections 40

Accounting Tools

OCTOBER 12, 2023

A fourth option is to require a personal guarantee by someone who has substantial personal resources. For example, a company with a dodgy credit history will only be able to issue bonds at a high interest rate, because prospective investors will otherwise have no interest in buying the bonds.

Collections 75

Collections Accounts Receivable Accounts Receivable Account Receivables 75