financial bonds questions Flashcards
bearer bond
a bond that is not registered in the investors name
bond indenture
a legal document that details all the conditions relating to a bond issue
call feature
this allows the corporation to call in or buy outstanding bonds from current bondholders before the maturity date
convertible bond
a bond that ca be exchanged, at the owners option for a specific number of shares of the corporations common stocks
corporate bond
a corporations written pledge to repay a specific amount of money, along with interest
current yield
determined by dividing the dollar amount of annual inters from an investment by its current market value
debenture bond
a bond that is backed only by the reputation of the issuing cooperation
face value
the dollar amount the bondholder will receive at the bonds maturity
junk bond
a type of bond that offers a very high returns but is very risky as the bond is nearing or currently is default
maturity date
for a corporate bond, the date on which the corporation is to repay the borrowed money
mortgage bond
a corporate bond secured by various assets of the issuing firm
registered bond
a bond that is registered in the owners name by the issuing company
registered coupon bond
a bond that is registered for principal only, and not for interest
serial bonds
bonds of a single issue that mature on different dates
sinking fund
a fund to which annual or semi-annual deposits are made for the purpose of redeeming a bind issue
