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 is generally $1,000 and represents the amount borrowed from the bond's first purchaser. 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. 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 called 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? 7-15-2005 7-15-2055 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 is generally $1,000 and represents the amount borrowed from the bond's first purchaser. A bond is if it does not pay the interest or the principal in accordance with the terms of the indenture face or maturity value agreemel more of the issue's restrictive covenants. The conti coupon payment rms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds is called yield to maturity 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. 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 A bond issuer is said to be in agreement or if it violates on The contract that describes th is called A bond's specified number or value of is generally $1,000 and represents the amount borrowed from the bond's first purchaser. if it does not pay the interest or the principal in accordance with the terms of the indenture he issue's restrictive covenants. bankruptcy borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds default pws a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a liquidation 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 is generally $1,000 and represents the amount borrowed from the bond's first purchaser. 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. 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 called A bond's allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a a trustee specified le of common shares. a debenture Suppose yo e about the Golden Gate Bridge and Highway District bonds. It includes the following information: an indenture 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 is generally $1,000 and represents the amount borrowed from the bond's first purchaser. 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. 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 called A bond's allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specified non shares. call provision Suppose yo convertibility provision le Golden Gate Bridge and Highway District bonds. It includes the following information: call premium Bridge Bonds Series A Dated 7-15-2005 4.375% Due 7-15-2055 @100.00 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 called the Issuers can gradually reduce the outstanding balance of a bond issue by using a sinking fund account into which they deposit a specified amount of money each year. To operationalize the sinking fund provision of an indenture, issuers can (1) purchase a portion of the debt in the open market or (2) call the bonds if they contain a call provision. Under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures? O when interest rates are lower than they were when the bonds were issued O When interest rates are higher than they were when the bonds were issued 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 bon called the zero coupon investors who purchase the bonds is floating-rate Issuers can gradually reduce the outstanding balance of a bond issue by using a sinking fund account into which they deposit a specified amount of money each year. To operationalize the sinking fund provision of an indenture, issuers can (1) purchase a portion of the debt in the open market or (2) call the bonds if they contain a call provision. Under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures? When interest rates are lower than they were when the bonds were issued When interest rates are higher than they were when the bonds were issued 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 called the money ea Issuers ca indenture educe the outstanding balance of a bond issue by using a sinking fund account into which they deposit a specified amount of trustee berationalize the sinking fund provision of an indenture, issuers can (1) purchase a portion of the debt in the open market or (2) call the bo pntain a call provision. debenture Under what circumstances would a firm be more likely to buy the required number of bonds in the open market as opposed to using one of the other procedures? When interest rates are lower than they were when the bonds were issued When interest rates are higher than they were when the bonds were issued