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18 Cards in this Set
- Front
- Back
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Funded Debt |
Corporate Bonds with maturities of 5 or more years. |
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Term Maturity |
Principal matures all at once |
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Serial Maturity |
staggered maturity of principal |
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Balloon Maturity |
Some matures before final maturity, but bulk matures at end |
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Registered Bonds |
Only currently under either Book-entry (no certificates) or Fully registered (T.A. maintains issue of both principal and int) |
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Bond Ratings Basis |
- current debt - stable cash flow - ability to meet scheduled payment obligations - asset protection and management capability |
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Security rank of risk |
- secured bonds - debentures -subordinated debentures - income bonds |
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Call Premium |
Difference between call price and par Call Price - Par |
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Refunding |
practice of raising money to call bond - new bond is sold to cover previous issue |
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Defeasance |
termination of the issuers oblgation. Debt is paid for (ie Prefunded) |
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Tender Offers |
offer made by issuer to buy back bonds, generally at a premium |
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Putable Bonds |
RIght to sell back the security at the owners convenience. |
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Current Yield |
Measures a bonds coupon Payment realtive to its market Price - Coupon Payment (annual Payment) /Market Price |
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Yield to Maturity |
Annualized return of bond if held to maturity Annual int + or - (Discount or Premium/Years to Maturity)/average price of bond |
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Yield Chart |
- Premium, Par, Discount - Coupon, CY, YTM, YTC |
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Normal Yield Curve |
Returns increase over time |
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Inverted or neg curve |
Yields decline over time |
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Secured Bonds |
Bonds backed by assets |
