$1)$ To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential.

For example:

$$ A bond$$s

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is generally $$1,000$ and represents the amount borrowed from the bond$$s first purchaser.

$$ A bond issuer is said to be in

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if it does not pay the interest or the principal in accordance with the terms of the indenture agreement or if it violates one or more of the issue$$s restrictive covenants.

$$ A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a

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$.$

$$ A bond$$s

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gives the issuer the right to call, or redeem, a bond at specific times and under specific conditions.

$2)$Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information:

Bridge Bonds Series A Dated $7-15-20054\mathrm{.}375\%$ Due $7-15-2055$ @$100\mathrm{.}00$

What is the coupon interest rate of this bond?

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$3)$ Which feature of a bond contract allows the issuer to redeem a bond issue immediately in its entirety at an amount greater than par value prior to maturity?

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$4)$Which term is used to describe a call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue?

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