Question
16. Describe the basic features of each of the following types of bonds: a. Floating rate bonds b. Original issue deep discount bonds c. Zero
16. Describe the basic features of each of the following types of bonds: a. Floating rate bonds b. Original issue deep discount bonds c. Zero coupon bonds d. Extendable notes (put bonds)
17. Explain what is meant by reinvestment rate risk.
18. Compare the debt outstanding for Delta Airlines and Southwest Airlines. Use the S&P Bond Guide from your library to determine the bond rating of each of these firms. What reasons can you cite for the differences in bond ratings between the firms?
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International Financial Management
Authors: Geert Bekaert, Robert Hodrick
3rd edition
1107111820, 110711182X, 978-1107111820
