Chapter 10: Debt Securities Flashcards
0
Q
What is promised interest rate on the bond?
A
Coupon rate
1
Q
What is amount that will be paid by issuer to the bond holders at maturity date?
A
Par or principal value
2
Q
Debt securities were historically issued with fixed coupon rates and paid fixed coupon payments, this is referred to as what?
A
Fixed income securities
3
Q
What is debt securities with maturities of less than a year?
A
Bills
4
Q
What is debt securities with maturities from 1 to 10 years?
A
Notes
5
Q
What is debt securities with maturities longer than 10 years?
A
Bonds
6
Q
What is subordinated debt?
A
Unsecured debt security with lower priority claim
