2. Characteristics of bonds Aa Aa E To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential For example: A bond's refers to the interest payment or payments paid by a bond. A bond issuer is said to be in 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 A bond's allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specified number or value of common shares. Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information: Bridge Bonds Series A Dated 7-15-2005 4.375% Due 7-15-2055 @100.00 What is the issuing date of this bond? 07-15-2005 O 7-15-2055 If the coupon interest rate remains constant from the time of issue until the bond matures, then the bond is called a bond. Which feature of a bond contract allows the issuer to redeem bonds under specified terms prior to maturity? Convertible provision Call provision Put provision Sinking fund provision 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? Sinking fund provision O Deferred call provision Delayed call provision