1)Which one of these definitions is correct?

• Premium bond: bond that sells for less than face value

• Unfunded debt: long-term corporate debt

• Dirty price: market price, excluding accrued interest

• Negative covenant: a "thou shalt" agreement

• Call provision: issuer's right to repurchase a bond prior to maturity

2)

A convertible bond can be exchanged for

• a newly issued bond if it carries a higher coupon rate.

• any other outstanding bond.

• shares of company stock.

• a new bond if the current bond’s rating falls to low-grade.

• cash equal to par value at any time.