Management and Organizational Studies 3361A/B Lecture 14: Chapter 14 Lecture Notes.docx

• School: Western University
• Department: Management and Organizational Studies
• Course: Management and Organizational Studies 3361A/B
• Professor: Michelle Loveland

Document Summary

Junk: high risk, you have to issue it at a higher interest rate to entice people so it"s deeply discounted, term/serial, term is maturing in one single date and serial is maturing in installments where you"ll have a portion of it mature, convertible, bonds that can be changed in to common shares, retractable (holder, the holder can control whether or not they want it to be retracted. If you don"t control the conversion the whole thing is a liability: extendable, i. e. issue a 10 year bond with possible extension of 5 more years, commodity backed (oil, wheat, zero interest/deep discount, zero interest bonds are usually sold at deep discount. Zero interest is bond with no coupon attached: stripped/zero coupon, stripped bond is stripped of its coupon, registered/bearer, registered with the issuer so not as freely traded, bearer bonds have the ability to be freely transferrable.