What hove been the main uses of the proceeds from recently issued junk bonds? Funds are used to merge with other companies and expand operations Funds are mainly used to pay off existing company debt Funds are mostly used to pay dividends to the owners Funds are regularty used to increase worker pay and safety, and to promote employoe rotention QUESTION 3 According to the article one of the main reasons investers are buying coc-rated debt (which ls dabt that trades in junk teritory) is: some irwestors love to speculate and do not care if they lose monoy In this very low-interest fate onvironment there're fewer investment atematives that peovidas a decent yiold to bond investors. most CCC-rated bonds are paid in full by the issuers, they are relatively low-risk irwestments the risk of CCC-rated bonds are on paper only. In roality, companies will pay junk bonda back to avoid disappointing imveators. Therefore, irwestors can buy junk bonds with contidence. Why has Hornbeck stock been delisted from the NYSE (New York Stock Exchange)? It failed to maintain a price of at least $1 for some time, Hornbeck declared banknuptcy and NYSE rules automatically delist bankrupt firms. Creditors petitioned the NYSE to delist the company as Hornbeck didn't honor its debts. A and B only A,B, and C only QUESTION 6 If bonds are percelved as a sater (jess risky) investment than stocks, how come bond buyers received only o.5\% of the tace value of their investment? The company can unilaterally change bond indentures and bondholders need to accopt the new conditions or risk losing their invesiment. The company declared bankruptcy and that ment all creditors sulfered losses due to dobt restructuring (this meane that bondholders receved a 'hakcut' using bond linga). Hornbeck's story shows that stocks are a sater investment than bonds. The situation its untair as bond buyers paid $600 and only received 55. What happened to the original bonds? They were converted into stock of the new Hombeck Company with the approval of the bankruptcy court. They were forfeited and become worthless. They were converted into stock of the original Hombeck Company after gaining approval of the bankruptcy court. They continue to be honored as stated in the original bond indenture. What hove been the main uses of the proceeds from recently issued junk bonds? Funds are used to merge with other companies and expand operations Funds are mainly used to pay off existing company debt Funds are mostly used to pay dividends to the owners Funds are regularty used to increase worker pay and safety, and to promote employoe rotention QUESTION 3 According to the article one of the main reasons investers are buying coc-rated debt (which ls dabt that trades in junk teritory) is: some irwestors love to speculate and do not care if they lose monoy In this very low-interest fate onvironment there're fewer investment atematives that peovidas a decent yiold to bond investors. most CCC-rated bonds are paid in full by the issuers, they are relatively low-risk irwestments the risk of CCC-rated bonds are on paper only. In roality, companies will pay junk bonda back to avoid disappointing imveators. Therefore, irwestors can buy junk bonds with contidence. Why has Hornbeck stock been delisted from the NYSE (New York Stock Exchange)? It failed to maintain a price of at least $1 for some time, Hornbeck declared banknuptcy and NYSE rules automatically delist bankrupt firms. Creditors petitioned the NYSE to delist the company as Hornbeck didn't honor its debts. A and B only A,B, and C only QUESTION 6 If bonds are percelved as a sater (jess risky) investment than stocks, how come bond buyers received only o.5\% of the tace value of their investment? The company can unilaterally change bond indentures and bondholders need to accopt the new conditions or risk losing their invesiment. The company declared bankruptcy and that ment all creditors sulfered losses due to dobt restructuring (this meane that bondholders receved a 'hakcut' using bond linga). Hornbeck's story shows that stocks are a sater investment than bonds. The situation its untair as bond buyers paid $600 and only received 55. What happened to the original bonds? They were converted into stock of the new Hombeck Company with the approval of the bankruptcy court. They were forfeited and become worthless. They were converted into stock of the original Hombeck Company after gaining approval of the bankruptcy court. They continue to be honored as stated in the original bond indenture
