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

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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

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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... View full answer

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