mvongphakdy5860 mvongphakdy5860
  • 04-01-2020
  • Business
contestada

Why might one prefer to issue fixed rate bonds rather than floating rate notes?

Respuesta :

shahzaibnaeem37 shahzaibnaeem37
  • 04-01-2020

Answer:

The advantages of issuing fixed rate bonds is that because the rates are fixed the interest payments are also fixed which means that the company can plan in advance their payments and face no surprises. Also if interest rates rise in the future the company will have not have to increase the interest payments because they have issued fixed rate bonds, whereas if they issued floating rate notes they would have to increase interest payments when interest rates increased.

Explanation:

Answer Link

Otras preguntas

Subtract. –21 – (–13) a. –34 b. –8 c. 8 d. 34
When you solve a problem involving money, what can a negative number represent
Which amendment to the U.S. Constitution was overturned by a later amendment? A. women's suffrage B. voting rights C. citizenship D. prohibition
Maritza remembers her pin because it is the product of consecutive prime numbers that is between 1000 and 1500. What is her pin
between what 2 integers does 75 lie in
.304 in expanded notation
how do you round 415,203 to the thousands place
Adam is scuba diving. he descends 5 feet below sea level. he descends the same distance 4 more times. what is adam's final elevation?
Which expression could be a calculator’s display for the number 135,000,000,000,000? A. 0.135e15 B. 1.35e14 C. 13.5e13 D. 134e−14
Which number is divisible by 3 and 5 a. 130 b. 325 c. 4113 d. 2040