Examlex
A firm may face increases in the weighted average cost of capital either when retained earnings have been exhausted or due to increases in debt, preferred stock, and common equity costs as additional new funds are required.
Coupon Bond
A type of bond that pays the holder periodic interest payments called coupons and returns the principal at maturity.
Yield To Maturity
The total return expected on a bond if held until it matures, considering all interest payments and principal repayment.
Par Value
The face value of a bond or the stock value stated in the corporate charter, often used as a reference point for the bond's interest payment.
Callable Bond
A bond that can be redeemed by the issuer prior to its maturity date, usually at a premium to its face value.
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