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18 Cards in this Set
- Front
- Back
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Bond Indenture
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where terms and conditions of the bond issue are listed
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call provision
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a provision in a bond indenture that allows the issuer the option of paying off an obligation before the instrument's date of security
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coupon rate
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the specified interest rate payable to the bondholder
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coupon amount
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coupon rate multiplied by the face value of the bond
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debenture
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A bond not secured by a specific pledge of property (no collateral)
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junk bonds
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(high yield bonds) bonds with low ratings, higher risk, and a higher potential of yield
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maturity date
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date which a bond issue becomes due
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par value
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face value of a security
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put provision
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allows the bondholder the option of selling the bond back to the issuer at par value on specified dates
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treasury bills
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mature in one year or less
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treasury notes
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mature in two to ten years
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treasury bonds
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mature in five to thirty-five years (issued in denominations of 500-1 million)
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treasury strips
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separate trading of registered interest and principle securities
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zero-coupon bonds
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a bond with no interest payments
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current yield
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ratio of the coupon rate on a bond to the dollar purchase price
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Liquidity Pereference Theory
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interest pays you for the time you part with your funds, and no-interest just pays you what you withheld from spending.
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Yield-To-Call
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reurn aailable until the call date
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Yield-To-Maturity
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return available until the maturity date
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