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Bond Test

Terms in this set (25)

The amount a bondholder is repaid when a bond matures
Face value
Bonds are considered ____ investments because a specified amount of interest is paid on a regular basis
Fixed-income
A(n) ____ bond is recorded in the owner's name by the issuer
Registered
A(n) ____ or bearer bond is not registered in the owner's name by the issuer
Registered coupon bond
A bond is ____ when it can be paid off before its maturity date
Callable
A(n) ____ is a bond backed only by the reputation of the issuing corporation
Debenture
Secured bonds, called ____, are backed by specific assets of the issuing firm
Mortgage
A(n) ____ bond can be exchanged for a specified number of shares of common stock
Convertible
The principal of a bond must be repaid in full on its ____ date
Maturity
When bonds sell for more than their face value, they are selling at a ____
Premium
When bonds sell for less than their face value, they are selling at a ____
Discount
A(n) ____ bond is repaid from the income generated by a project it's designed to finance
Revenue bonds
Bonds issued by state and local governments are called ____ bonds
Municipal (munis)
A(n) ____ bond is backed by the full faith and credit of the issuing governmental unit
general obligation
High-quality bonds are ____ because they are considered safe, stable, and dependable
investment grade
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