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6. Capital market instruments: Corporate bonds Which of the following are characteristics of corporate bonds? Check all that apply. O Their minimum denomination is $100,000.

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6. Capital market instruments: Corporate bonds Which of the following are characteristics of corporate bonds? Check all that apply. O Their minimum denomination is $100,000. Their maturities are normally between 10 and 30 years, however they can be issued with 50-year or even 100-year maturities. The interest income earned on them is exempt from state and federal taxes. The interest paid on them is tax deductible to the corporation. Convertible bonds Variable-rate bonds Limit order Definition Call premium Securities that allow investors to swap the bond for shares in the firm's common equity. o o Securities that are issued with a coupon rate that adjusts over time. O O The difference between the call price and par value of a debt security when the security is retired prior to its maturity. o o An investor wanting to buy or sell bonds when the price reaches a specified value will place this. o O o

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