Exact(4)
Now issuers are paying bond holders above-market rates as high as 6 percent.
Risky mortgages serve their purpose; since the interest rate on them is higher, more money comes into the pool and is available for paying bond interest.
Leon, a sandwich shop here, plans to pay interest to its bond investors in salads and meatball wraps, while Hotel Chocolat, a British chocolate maker, has been paying bond investors in boxes of chocolate.
On the flip side, that makes the lower interest paying bond less valuable.
Similar(56)
The deterrent: family detention centers and a new policy preventing mothers and children from paying bonds in exchange for relative freedom until their court dates.
And by law most state and local governments must pay bond interest before financing any public services.
Petrobras, Brazil's energy giant, will pay bond investors about a percentage point more in yield than the government that controls it.
Unfortunately issuers cannot always afford to pay bond owners back.
The country was prepared to pay bond holders who had to agreed to restructure their debt but not the hedge funds.
So, in theory, the government could make "hard choices" to pay bond holders before it pays for other things.
Some people say that having a private company oversee the ability to pay bond is unfair to people who don't have a lot of money.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com