A bonds is generally $$1,000$ and represents the amount borrowed from the bonds 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 issues 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 bonds allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a specified number or value of common shares.