Chapter 15 Bonds

A debenture is a bond backed by ?

By a company's credit rating

A bond is ____________ when it can be paid off before its maturity date?

Callable

A bond that can be exchanged for a specified number of shares of common stock?

Convertible

A ________ or bearer bond that is not registered in the owner's name by the issuer?

Coupon

The ______ is determined by dividing the annual interest dollar amount of a bond by its current market price?

Current Yield

A bond backed by the full faith and credit of the issuing CORPORATION?

Debenture

A bond issued for less than its face value?

Discount

The amount a bondholder is repaid when a bond matures?

Face value

A bond is considered a ___________ investment because a specified amount of interest is paid on a regular basis?

Fixed Income

A bond backed by the full faith and credit of the issuing GOVERNMENTAL unit?

General Obligation

High-quality bonds that are considered safe, stable and dependable?

Investment Grade

Corporate bonds with a low rating or no rating at all?

Junk bonds

The principal of a bond must be repaid at it's ________ date?

Maturity

The principle or face value of the bond must be paid in full at the ______ ______.

Maturity date

Secured bonds backed by specific assets of a CORPORATION?

Mortgage

______ bonds are issued by state or local governments.

Municipal

Bonds issued by state or local governments?

Municipal Bonds

A bond issued at more than its face value?

Premium

A bond issued for more than its face value is known as a _________ ______.

Premium bond

A bond that IS recorded in the owner's name?

Registered

A bond repaid from the income generated by a specific project it's designed to finance?

Revenue

The Maturity Date of a bond is?

The date the face value of a bond must be paid

A bond that is sold below its face value, with no interest payments, and redeemable for its face value at maturity?

Zero-Coupon

A feature that allows a bond issuer to buy outstanding bonds from current bondholders before the maturity date is known as a _______.

call provision

What are corporate bonds backed by the general credit standing of a corporation called?

debentures

What bond would have a low rating?

junk bonds

A ______ bond is recorded in the owner's name by the issuing company.

registered