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Personal Finance Chapter 13, Investing in Bonds
BHS Tuttle 2012-2013
Terms in this set (20)
Face Value (Principle)
The amount the bondholder will be repaid at maturity.
A bond that the issuer has the right to pay off before its maturity date.
A corporate bond that is not backd by collateral but by the general credit standing of the corporation.
"or Secured Bond", is a corporate bond backed by specific assets as collateral to assure repayment.
A corporate bond that the bondholder can choose to exchange for shares of the corporation.
A bond issued by the state and local governments.
A municiple bond issued to raise money for a public-works project.
General Obligation Bond
A municiple bond backed by the power of issuing state or local government.
Your loaning money to an agency.
A bond that is sold at a deep discount, makes no interest payments, and is redeemable for its face value at maturity.
Any bond with a Baa rating or higher in Moody's, or BBB in Standard & Poor's.
A bond that has a low rating, or no rating at all.
Fixed Income Bond
Fixed income refers to any type of investment under which the borrower/issuer is obliged to make payments of a fixed amount on a fixed schedule: for example, if the borrower has to pay interest at a fixed rate once a year, and to repay the principal amount on maturity.
a bond registered in the owner's name by the issuing company
a bond issued with detachable coupons that must be presented to the issuer for interest payments
a government bond that bears no interest or capital gains but enters the holder into lotteries
Bond selling below its par value.
Tax Exempt Bond
sold by local and state governments; interest paid on the bond is not taxed by the federal government
A bond issued by a federal agency
Tax deferred bond
A bond usually issued by municipal, county, or state governments whose interest payments are not subject to federal and, in some cases, state and local income tax.
THIS SET IS OFTEN IN FOLDERS WITH...
Finance Chapter 11 Investing for your Future
Chapter 4: Tax Planning and Strategies
Finance CH7-Interest Rates and Bond Valuation
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