11-14 Flashcards
1
Q
Stated interest on the debt
A
Coupon rate
2
Q
Exceptionally risky bonds with a standard & poor’s rating of BB or lower, or a Moody’s rating of Ba or lower
A
Junk bonds
3
Q
Formal long term contract that requires repayment of borrowed money and interest on the borrowed funds at regular intervals over time
A
Bonds
4
Q
Principal of a bond or total amount borrowed
A
Par value
5
Q
Someone who inherits the ownership of the financial asset if the purchaser dies
A
Beneficiary
6
Q
Money markets
A
Money is loaned for periods of less than one year
