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 WEB EXERCISES FOR DISCERNING FINANCE STUDENTS 

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PART VII: INTERMEDIATE AND LONG-TERM FINANCING
Chapter 20: Long-Term Debt, Preferred Stock, and Common Stock
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 Exercise 20.1 Bonds and Their Features

A visit to the Financial Pipeline Bond Page will lead you to a section dealing with the various Types of Bonds.

In addition to the various types of bonds discussed in Chapter 20 in our text, the folks at Financial Pipeline also discuss "Extendible/Retractable Bonds."
http://www.finpipe.com/fixed.htm
http://www.finpipe.com/typbond.htm

Q. What are the characteristics of "extendible/retractable bonds"? How are these bonds different from (similar to) regular corporate bonds?

 

 

 Exercise 20.2 Preferred Stock and Its Features

A visit to the Financial Pipeline Equity Page will lead you to a section dealing with the various Types of Preferred Shares.

In addition to the various types/features of preferred stock discussed in Chapter 20 in our text, the folks at Financial Pipeline also discuss some additional types/features of preferred stock.
http://www.finpipe.com/equity/equity.htm
http://www.finpipe.com/equity/preftyp.htm

Q. What are some the new things that you learned about preferred stock by visiting this Web site that were not also contained in Chapter 20? What are some of the things that you learned about preferred stock by reading Chapter 20 that were not also covered at this Web site?

 

 

 Exercise 20.3 Bonds and Their Features

The Securities Industry and Financial Markets Association (SIFMA) web site provides you "An Investor's Guide to Corporate Bonds."
http://www.sifma.org/
http://www.sifma.org/services/publications/pdf/An_Investors_Guide_to_Corporate-Bonds(2).pdf

Q. After reading the guide: (1) explain, in your own words, what is meant by the term "guaranteed bond"; (2) in your own words, compare and contrast, "registered bonds," bearer bonds," and "book-entry bonds"; and (3) explain why you should be careful if someone offers to sell you a 30-year, 10 percent coupon, debenture bond that was issued by IBM in the U.S. in 1995.

 

 


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