Q: If Yankee issue and a dollar Eurobonds have the same nominal coupon, which one pays more valuable interest?

A: Eurobond pays interest annually, while the Yankee bond pays it semi-annually. So the Yankee issue, if it has the same nominal coupon, is more valuable.

Q: Does the leap year affects any instrument?

A: Yes, as a general rule, the leap year affects all instruments that pay interests on a formula including the actual number of days elapsed. However, the terms of the bond might in some cases specify otherwise, so itís always advisable to check them first.

Q: Is it true that a subordinated debt in liquidation acquires the same rights as senior debt?

A: No, in this case subordinated debt does not have the same rights as a senior debt.

Back to Homepage