A test designed to determine the amount of additional bonds a company or organization can issue. The additional bonds tests involves an underwriter reviewing the amount of a standard benchmark such as a company's cash flows or revenues, and determining the amount that can be used specifically for paying interest on new bonds.
Related information about additional bonds test:
- ADDITIONAL BONDS COVENANT or TEST - Municipal Securities ...
ADDITIONAL BONDS COVENANT or TEST – The financial test, sometimes referred to as a “parity test,” that must be satisfied under the bond contract securing ...
- Additional Bonds Test - Financial Dictionary - The Free Dictionary
Additional bonds test. A test for ensuring that bond issuers can meet the debt service requirements of issuing any new additional bonds. Additional Bonds Test ...
- Additional Bonds Test: Definition from Answers.com
test limiting the amount of new bonds that can be issued. Since bonds are secured by assets or revenues of a corporate or governmental entity, the underwriters.
- What is additional bonds test? definition and meaning
Definition of additional bonds test: A test designed to determine the amount of additional bonds a company or organization can issue. The additional bonds tests ...
- Additional Bonds Test
Definition of "Additional Bonds Test". A test that is required when additional bonds being issued will be secured by revenues or assets already pledged to ...
- Municipal Bond Tips For The Series 7 Exam
Jul 1, 2008 ... Open-end: The issuer may sell additional bonds with equal claim to assets if permitted under the provisions of the additional bonds test ...
- Additional Bond Test Law & Legal Definition
The additional bonds test shows what assets the potential issuer has available ... The additional bonds test increases the transparency of the market and helps ...
- Additional bonds test Definition - NASDAQ.com
Additional bonds test: read the definition of Additional bonds test and 8000+ other financial and investing terms in the NASDAQ.com Financial Glossary.