ExamVeda
Login
Home

A usage of proceeds of new issue to retire issue with...

This question belongs to Commerce Financial Management
Financial Management
?

A usage of proceeds of new issue to retire issue with high-rate is classified as

Answer & Solution
Correct Answer: Option A
A usage of proceeds of new issue to retire issue with high-rate is classified as refunding operation. Refunding is the process of retiring or redeeming an outstanding bond issue at maturity by using the proceeds from a new debt issue. The new issue is almost always issued at a lower rate of interest than the refunded issue, ensuring significant reduction in interest expense for the issuer.
Examveda
Question posted by Examveda
Community

Join the Discussion

No comments yet Be the first to discuss this question.
Keep Learning

Related Questions on Financial Management

Investment is the _______________.
A. net additions made to the nation’s capital stocks B. person’s commitment to buy a flat or house C. employment of funds on assets to earn returns D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities B. Arrangement of funds C. Efficient Management of every business D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return B. to minimize the risk C. to maximize the wealth of owners D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds B. arrangement of financial resources C. acquiring capital assets of the organization D. efficient management of capital
More Related Questions on Financial Management