2. Characteristics of bonds Aa Aa 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 if it does not pay the interest or the principal in accordance A bond issuer is said to be in with the terms of the indenture agreement or if it violates one or more of the issue's restrictive covenants. A bond contract feature tha t requires the issuer to retire a specified portion of the bond issue each yea 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