2. Characteristics of bonds 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 Eridge 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? 7152005 7-15-2055 If the price of the bond is initially discounted and offers no coupon payments, the bond is called a bond. The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is calied the When are issuers more likely to call an outstanding bond issue? When interest rates are higher than they were when the bonds were issued When interest rates are fower than they were when the bonds were issued