This entry was posted on April 17, 2010 at 1:56 am and is filed under 债券. You can follow any responses to this entry through the RSS 2.0 feed.
2 Responses to How would the buying back of bonds profit a company?
jeff410 on April 17, 2010 at 2:01 am
When interest rates go down the company would be better off by buying back existing higher rate bonds so they didnt have to pay the higher interest, and issuing lower rate bonds.
when bonds are perceived as risky or when rates go UP, they may trade at less than 100. Company can buy back $100 in debt for $30 or $50 or $80, showing a profit.
When interest rates go down the company would be better off by buying back existing higher rate bonds so they didnt have to pay the higher interest, and issuing lower rate bonds.
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Or. . . .
when bonds are perceived as risky or when rates go UP, they may trade at less than 100. Company can buy back $100 in debt for $30 or $50 or $80, showing a profit.
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