A rating agency is an organization that specializes in assessing the financial strength of a company or government entity that uses the capital markets… Read Article
What are Original Issue Discount (OID) Bonds?Original issue discount is the difference between the face value of bonds and the price at which the… Read Article
In order to understand the coupon rate, it is important to understand fixed-income securities first. Every now and again, government institutions and public companies… Read Article
What is the Conversion Price?The conversion price informs the bondholders of the number of shares that would be issued in case they opt for… Read Article
Deferred coupon bonds are ones where interest is paid at maturity. The capital structure of a business needs certain financial instruments on which the… Read Article
Puttable Bond is a low-yield source of finance. Companies obtain funds using different financial instruments. The cost of obtaining these funds sometimes puts pressure… Read Article
What are PIK Bonds?PIK Bond stands for Payment in Kind Bond. The term ‘payment in kind bond’ partially speaks its definition. In any normal… Read Article
What is Long-Term Finance?The funds that are not paid back within less than a year are referred to as long-term finance. Certain long-term finance… Read Article