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25 Cards in this Set
- Front
- Back
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Bond |
Promise to Pay (Promissory Note). |
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Maturity |
Date on which the principal is to be repaid. |
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Face Amount or Par Value |
The principal amount of the bond. |
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Coupon Interest Rate |
Stated annual interest rate |
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Basis Points |
1/100th of 1% |
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Indenture Agreement |
A disclosure document which describes all terms and conditions of the bond |
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Debenture |
Unsecured Bond. A bond with no collateral. |
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Subordinated Debenture |
2nd position debenture |
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Secured Bonds |
Bonds backed by collateral of some sort. Ex: General Mortgage Railroad Bond. |
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Registered Bonds |
A bond issue in which the bond register records ownership of each bond. |
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Bearer Bonds |
A bond issued without record of the owners name |
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Convertible Bonds |
Bond holder option to covert bonds to common stock |
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Zero Coupon Bonds |
No interest is paid but the purchase of the bond is made at a steep discount |
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Floating Rate Bonds |
Adjustable interest rate tied to some easily accessible index. Ex: 10 YR T-Bill |
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Income Bonds |
Bond in which interest is paid only when a company has declared profit |
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Euro Bonds |
(Not related to Euro currency or the European Union) Resulted from the use of Euro Dollars |
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Euro Dollar |
U.S. dollars held by non-U.S. banks and loaned by them to borrowers who want dollar denominated loans. |
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Long Term Bonds |
Bonds with a maturity greater than 30 years |
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Perpetual Bonds |
Bond issued with no maturity |
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Municipal Bonds |
Bonds issued by state + local government and is tax free to the citizens of the state. |
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Call Provision |
Bond Issuer right to redeem, or call back bonds |
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Put Provision |
Bond holder right to sell back bonds to the issuer |
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Serial Payment Method |
Bond Redemption in which a % of bond are bought back each year |
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Sinking Fund Method |
Bond issuer pays a % each year to a third party trustee to keep until maturity |
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Warrants |
Option (add on) buy our bond we give you option to buy company stock at a fixed price in the future. |
