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