Bonds Flashcards
1
Q
Bill
A
A bond that matures in less than 1 year
2
Q
Bond ladder
A
A set of bonds where one matures every year, quarter, or month, thereby self- replenishing
3
Q
Coupon
A
An interest payment
4
Q
Maturity
A
The length of time until the final payment on a bond
5
Q
Medium-term note (MTN)
A
A bond that usually matures in 1-5 year
6
Q
Note
A
A bond that matures in 1-10 years
7
Q
Principal
A
the par value of a bond
8
Q
Restrictive covenant
A
A set of terms and conditions the buyer of a bond can make the issuer agree to
9
Q
Secured
A
A bond that is backed up by specific collateral
10
Q
Zero-coupon bond
A
A bond that makes a single payment and gives no interest payments.