152 Best Security Questions and Answers (Q&A) - ProProfs Discuss

How does a forced conversion improve the companyes debt/equityratio?

John Smith
Answered: Apr 24, 2024

How does a forced conversion improve the debt/equity ratio? Investors who decide toconvert their securities from debt to equity means that the money that was raised bythe issuer in the form of debt...Read More

1 Answer

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Can you explain the bond switching technique of moving into long-term high-coupon bonds when interest rates are falling?

John Smith
Answered: Apr 24, 2024

When the bond price is rising, you want to select the most volatile bond characteristics. long-term coupon bonds are more volatile in price percentage change than short-term coupon bonds. low coupon...Read More

1 Answer

235 views

Why does a bond trading at a premium make a difference when considering settlement dates?

John Smith
Answered: Apr 24, 2024

When a transaction occurs, you look at the time left to maturity to determine for government of canada bonds and guaranteed bonds when the transaction settles. but what if the bonds have a call...Read More

1 Answer

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What is an ideal strategy to prevent against XSS attacks?

Training
Answered: Apr 24, 2024

Input Validation + Output coding

1 Answer

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What is the present value of the principal?

John Smith
Answered: Apr 24, 2024

The present value of the principal is $781.19, which represents the value today of the $1,000 principal value of the bond to be received in five years time.note: this method is also used to...Read More

1 Answer

231 views

Do brand new and properly functioning smoke detectors/smoke alarms get false trips?

John Smith
Answered: Apr 24, 2024

True. Brand new and properly functioning smoke detectors/smoke alarms do get false trips. Insects, high humidity creating condensation in the sensing chamber, dust, or even the occasional r...Read More

1 Answer

231 views

Can you give me an example of the difference between the nominal rate of return and the real rate of return?

John Smith
Answered: Apr 24, 2024

Real rate of return = nominal rate of return inflationyou receive a nominal rate of return from your investment, but because inflation is higher, your real return will be lower. for example, if i...Read More

1 Answer

231 views

Can you explain forced conversion better?

John Smith
Answered: Apr 24, 2024

When the bond holder issues debt, the money they raise represents a loan that they must pay interest on and must also pay back the principal amount of the loan upon maturity. So corporations may...Read More

1 Answer

230 views

How can I tell if a bond is extendible or retractable?

John Smith
Answered: Apr 24, 2024

Extendible means you can extend the maturity date (i.e., make it mature later than its original maturity date). Retractable means you can shorten the maturity date (i.e., make it mature sooner...Read More

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What does selling off the stock mean?

John Smith
Answered: Apr 24, 2024

A convertible selling off the stock is merely a phrase that indicates that theconvertible price is now directly affected by movements in the underlying commonshare.example: $100 convertible...Read More

1 Answer

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Why is holding a bond with a sinking fund obligation a disadvantage to investors?

John Smith
Answered: Apr 24, 2024

If westcoast energy buys back any of its debentures, as an example, and thepurchase is not done through the sinking fund, the company can turn over those bondsto the trustee. when the trustee...Read More

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Can you elaborate for me on convertible payback periods?

John Smith
Answered: Apr 24, 2024

If you buy a convertible and pay a premium of 3%, as an example, how long would ittake to recoup this if the convertible yield pays 5% and the common share pays only2%? If you paid an extra 3% by...Read More

1 Answer

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Can you please explain the prohibitions on the disposal of shares as a bond provision and some of the other various restrictions mentioned in the text?

John Smith
Answered: Apr 24, 2024

The disposal of the shares of a subsidiary by the company issuing the debt. This means the company that issues the debt may be prohibited from selling the shares they own in a subsidiary company....Read More

1 Answer

230 views

What is the purpose of calculating accrued interest?

John Smith
Answered: Apr 24, 2024

If you buy the bond on august 1, and the next interest payment date is august 15th, the issuer will be paying the full 6 months interest payment to you, because you are the current owner of the...Read More

1 Answer

229 views

What are the characteristics of a computer virus?

Afenn
Answered: Apr 24, 2024

Replication mechanism, activation mechanism and objective.

Replication mechanism: To replicate a virus needs to attach itself to the right code, where it can replicate and spread past...Read More

1 Answer

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