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21 Cards in this Set
- Front
- Back
At what issue amount does the corporation issuing bonds have to provide investors with an indenture ?
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$10 Million |
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This is the name of the agreement between the bond issuer and the trustee who acts on behalf of the bond holders |
Indenture |
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This type of indenture does not permit the corporation to issue additional bonds secured by the same claim on the same assets as the original issue |
Close Ended Indenture |
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This type of indenture does permit the corporation to issue additional bonds secured by the same claim on the same assets as the original issue |
Open-Ended Indenture |
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This type of bond is secured by the full faith and credit of an issuer and by a specific asset that the corporation owns |
Secured Bond |
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This type of bond is secured only by the corporation's full faith and credit |
Unsecured Bond |
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This type of secured bond is secured by a first or second mortgage on real property |
Mortgage Bond |
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This type of bond is secured by a specific piece of equipment that is owned by a corporation and used in its business |
Equipment Trust Certificates |
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This type of bond is secured by third-party securities owned by an issuer |
Collateral Trust Bonds |
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From Highest to Lowest list the liquidation rites in the event of a bankruptcy |
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What is a debenture? |
An unsecured bond |
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What is a subordinated debenture? |
A bond that is unsecured and that has a junior claim on the company assets compared to other outstanding bonds. |
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This type of bond has interest and principal payments that are guaranteed by another company, usually a parent. |
Guaranteed Bonds |
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With this type of bond, the issuer promises to repay the principal amount at maturity, but promises to pay interest only if it has sufficient earnings |
Income Bonds |
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This type of money market instrument is a short term, unsecured corporate debt, that typically matures within 270 days or less |
Commercial Paper |
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This type of money market instrument is a promised future payment, or time draft, which is accepted and guaranteed by a bank and drawn on a deposit at the bank |
Bankers Acceptance |
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This type of money market instrument is an agreement between a two dealers, where the first dealer agrees to sell securities to a second dealer, with the first dealer buying them back at a specified time and price in the future. |
Repurchase Agreement or Repo |
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This type of money market instrument is an agreement where a dealer purchases securities and agrees to sell them back to another dealer at a specific date and price |
Reverse Repo |
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This type of money market instrument is issued by banks and savings companies, and are time deposits carrying a fixed rate of interest, which mature after a specified period. |
Negotiable CDs |
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What are some of the risks associated with Long Term CDs |
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This type of overnight borrowing between banks, that is usually done to allow a bank with a reserve deficit borrow money from a bank with a reserve surplus. |
Fed Funds |