Abstract:By definition, a paradox is phenomenon or action with seemingly contradictory qualities or phases, and also * * an assertion or sentiment seemingly contradictory, or opposed to common sense, but that ...By definition, a paradox is phenomenon or action with seemingly contradictory qualities or phases, and also * * an assertion or sentiment seemingly contradictory, or opposed to common sense, but that yet may be true in fact.1 For many years the financial community of the United States has accepted coupon bonds as an approved and necessary device in any bond financing. Annually billions of dollars of corporate, governmental and municipal obligations are issued to the public in coupon form in the denomination of $1,000. In some issues an exchange to fully registered bonds2 is permitted, sometimes without charge. Large institutional investors, confronted by the problems of storage, have demanded bonds in fully registered form and their use has been increasing. By and large, however, the coupon bond in the denomination of $1,000 is the present prevailing form in fact, the balance is presently so weighted in favor of the coupon bond that a person owning a registered bond of an issue exchangeable for a coupon bond will find that the market will exact a discount below the price of a coupon bond of the same issue in the event he sells. The reasons for discrimination against registered bonds are hard to rationalize whenRead More
Publication Year: 2016
Publication Date: 2016-01-01
Language: en
Type: article
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