Question : Case Study 16:
GHI Ltd. is a leading company in the telecommunications sector planning to expand its international operations.
Question :
GHI Ltd. plans to issue bonds with a fixed interest rate and a maturity period of 7 years. What type of bonds are these?
Option 1: Convertible bonds
Option 2: Floating-rate bonds
Option 3: Zero-coupon bonds
Option 4: Corporate bonds
Correct Answer: Corporate bonds
Solution : The correct answer is (d) Corporate bonds.
Corporate bonds are debt securities issued by corporations to raise capital. They have a fixed interest rate and a specific maturity period, making them the most suitable choice based on the information provided in the question. Corporate bonds pay regular interest to bondholders until maturity when the principal amount is repaid.
Question : Case Study 13:
XYZ Corporation is a conglomerate planning to diversify its operations by entering the renewable energy sector.
XYZ Corporation is issuing bonds with a fixed interest rate and maturity period of 10 years to fund its renewable energy projects. What type of bonds are these?
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