对外经济贸易大学资学课件8.pptVIP

Other features Optional features Secured bond: certain assets serve as collateral Guaranteed bond: someone other than issuer guarantees payment Callable (redeemable) bond: issuer may redeem (pay) bond before maturity, often requires paying call premium (e.g., one year’s worth of extra interest). Why would issuer want to redeem bonds? Convertible bond: DHs can convert bond into shares Other covenants: issuer obligations, breach of which = default Table 14.2 Bond Prices at Different Interest Rates Determining Spot Rates (example) Z1 = 3.62%, Z2 = 3.949%, Z3 = 4.007% The cash flow