Chapter 19 Flashcards
the date when a bond will be repaid
maturity date
the dollar amount that a bondholder will receive at a bond’s maturity
face value
a bond that is backed only by the reputation of the issuing corporation, rather than by its asset
debenture
A bonds that is backed by the assets of a corporation
mortgage bond
Bonds that an investor can trade for shares of common stock
convertible bond
a fund in which the corporation makes deposits for the purpose of paying back a bond issue
sinking fund
bonds issued at the same time but which mature on different dates
serial bonds
bond registered in the owner’s name by the company that issues the bond
registered bond
bond that is registered in the owner’s name for only the face value and not for interest
coupon bond
bond that is not registered in the investor’s name
bearer bond
bond that does not produce interest payments
zero-coupon bond
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 bond
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
fund that invests in stocks or other securities contained in a specific stock or securities index
exchange traded fund
is a mutual fund with an unlimited number of shares that are issued and redeemed by an investment company at the investors request
open end fund
amount that one share of a mutual fund is worth
net asset value (nav)
mutual fund for which is pay a commission every time you buy or sell shares
load fund