The value of the books, is when you register all properties, assets, debts in the ledger, the liquidation value refers to when you get money from the sale of assets, the market value is when you determine the value to movable and immovable property and the money you can get in normal conditions in the sale thereof, the intrinsic value is when you divide the net assets in shares payable.
What is the difference between the par value of a bond and the market value of a bond?
The par value of a bond issued to entities so they can carry out their activities in the market but these bonds win or lose value depending on the prevailing interest rate at the time to give them, the fulfillment of the commitment not to pay them.
Explain the difference between the bond’s coupon interest rate with the current yield, and bondholder’s required rate of return.
The coupon rate is the interest payment multiplied and gives the dollar value, the current yield is the interest on bonds subtracted unless deducted in the price to make themcompetitive, bond holders are the owners and the rate of return required to reinvest.
Distinguish between debentures bonds and mortgage bonds.
Debentures bond-insured credit of a corporation and / or promise of payment of a corporation and they do not have collateral, are the most pay interest and because they have no collateral, are the safest and have the same buildings as collateral , residences or the shares of a company.
Define (a) eurobonds, (b) zero coupon bonds, and (c) junk bonds.
Eurobonds-international bond issued outside of the country, zero-coupon bonds do not pay interest on the lifetime, are long term, more than ten years are called junk bonds-bb, high risk, high interest.
Why the dividends of preferred stock are paid before the dividends of common stocks?
The common shares are owned by the owners of the company and
References: Finances. (2013). Retrieved January 6, 2013 from http://www.investopedia.com/terms/f/finance.asp