Bonds Flashcards

1
Q

Bill

A

A bond that matures in less than 1 year

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2
Q

Bond ladder

A

A set of bonds where one matures every year, quarter, or month, thereby self- replenishing

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3
Q

Coupon

A

An interest payment

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4
Q

Maturity

A

The length of time until the final payment on a bond

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5
Q

Medium-term note (MTN)

A

A bond that usually matures in 1-5 year

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6
Q

Note

A

A bond that matures in 1-10 years

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7
Q

Principal

A

the par value of a bond

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8
Q

Restrictive covenant

A

A set of terms and conditions the buyer of a bond can make the issuer agree to

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9
Q

Secured

A

A bond that is backed up by specific collateral

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10
Q

Zero-coupon bond

A

A bond that makes a single payment and gives no interest payments.

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