Define each of the following terms a Bond Treasury bond corporate bond municipal bond foreign bond b Par value maturity date coupon payment coupon interest rate c Floating rate bond zero coupon bond original issue discount bond (OID) d Call provision redeemable bond sinking fund e Convertible bond ...

a A bond is a promissory note issued by a business or a governmental unit Treasury bonds sometimes referred to as government bonds are issued by the Federal government and are not exposed to default r ...

Define each of the following terms: a. Bond; Treasury bond; corporate bond; municipal bond; foreign bond b.

Question:

Define each of the following terms:
a. Bond; Treasury bond; corporate bond; municipal bond; foreign bond
b. Par value; date; payment; interest rate
c. Floating-rate bond; zero bond; original issue discount bond (OID)
d. Call provision; redeemable bond; sinking fund
e. Convertible bond; warrant; income bond; indexed, or purchasing power, bond
f. Premium bond; discount bond
g. Current yield (on a bond); yield to (YTM); yield to call (YTC)
h. Indentures; mortgage bond; debenture; subordinated debenture
i. Development bond; municipal bond insurance; junk bond; investment-grade bond
j. Real risk-free rate of interest, r*; nominal risk-free rate of interest, rRF
k. Inflation premium (IP); default risk premium (DRP); liquidity; liquidity premium (LP)
l. Interest rate risk; risk premium (MRP); reinvestment rate risk
m. Term structure of interest rates; yield curve
n. “Normal” yield curve; inverted (“abnormal”) yield curve

Coupon
A coupon or coupon payment is the annual interest rate paid on a bond, expressed as a percentage of the face value and paid from issue date until maturity. Coupons are usually referred to in terms of the coupon rate (the sum of coupons paid in a... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...