20 terms

Financial Management - Ch 10 Bonds and Mutual Funds

Maturity Date
the date on which a financial obligation must be repaid
Face Value
Amount of principal due at the maturity date of the bond
a bond that is backed by the credit of the issuer but not by any specific collateral
Mortgage Bond
sometimes referred to as a secured bond, is a bond that is backed by by assets of the corparation.
Convertible Bond
a bond that an investor can trade for shares of the corporation's common stock.
Sinking Fund
a fund accumulated regularly in a separate account and used to redeem debt securities
Serial Bond
bounds issued at the same time that mature on different dates
Registered Bond
a bond registered in the owner's name by the issuing company
Coupon Bond
a bond issued with detachable coupons that must be presented to the issuer for interest payments
Bearer Bond
a bond that is not registered in the investor's name
Zero-Coupon Bond
a bond that is issued at a deep discount from its value at maturity and pays no interest during the life of the bond
Municipal Bond
a bond issued by a state or local government
Investment-Grade Bonds
bonds that are issued by financially stable companies or municipalities
The financial return on stock on a per share basis expressed as a percent of the stock market value.
Closed-End Fund
a mutual fund with a fixed number of shares that are issued by an investment company when the fund is first organized
Open-Ended Fund
A type of mutual fund that does not have restrictions on the amount of shares the fund will issue. Open-end funds also buy back shares when investors wish to sell.
Net Asset Value
amount one shares of a mutual fund is worth
Load Fund
mutual fund in which you pay a commission every time you purchase shares
No-Load Fund
a mutual fund in which the individual investor pays no commission
Income Dividends
the earnings a fund pays to shareholders from its dividend and interest income