additional bonds test(redirected from Additional Bonds Tests)
Additional bonds test
Additional Bonds Test
A financial statement that a company must issue before making a new issue of a bond. The additional bonds test shows what assets the potential issuer has available to pay coupons on the bond. It helps ensure the issuer is able to service debt on the new issue. The additional bonds test increases the transparency of the market and helps one accurately gauge the risk of the new bond issue.
additional bonds test
A financial standard that must be met before issuing bonds that use as security revenues or assets already pledged for outstanding bonds.