Chapter 10 Flashcards
The dollar amount that the bondholder will receive at the bond’s maturity
Face value
The date when a bond will be repaid
Maturity date
A bond that is backed only by the reputation of the issuing corporation, rather than its assets
Debenture
A bond that is backed by assets of a corporation
Mortgage bond
A bond that an investor can trade for shares of the corporation’s common stock
Convertible bond
A fund to which a corporate makes deposits for the purpose of paying back a bond issue
Sinking fund
Bonds issued at the same time but which mature at different dates
Serial bonds
A bond registered in the owner’s name by the company that issues the bond
Registered bond
A bond that is registered in the owner’s name for only the face value and not for interest
Coupon bond
A bond that is not registered in the investor’s name
Bearer bond
A bond that does not produce interest payments
Zero coupon bond
A security issued by a state or local government to pay for its ongoing activities
Municipal bond
Bonds that are issued by financially stable companies or municipalities
Investment grade bonds
The rate of return, usually stated as a percentage, earned by an investor who holds a bond for a certain period of time
Yield
A mutual fund with a fixed number of shares that are issued by an investment company when the fund is first organized
Closed end fund
