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18 Cards in this Set

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