A legal document that details the rights of bondholders and the issuer is called If the legal document just described includes a sinking fund provision, is the bond considered to have more or less default risk, all else being equal? Less default risk More default risk You can distinguish the various types of bonds by their terms of contract, pledge of collateral, and so on. Identify the type of bond based on each description given in the table that follows: Type of Bond Description These bonds are traded in the bond markets based on investors' belief that the issuer will not default on the repayment. These bonds have no collateral and usually offer higher yields. These bonds have a claim on assets only after senior debt has been paid in full. These bonds are backed by real estate holdings and equipment, and if a company goes bankrupt, the collateral can be sold off to compensate for the default. These bonds, more so than other collateralized securities, have prior claims over assets. Junior mortgage bonds Debentures Senior mortgage bonds Subordinated debentures The Export Development Canada (EDC) announced that it launched a USD 1 billion three-year Global Bond, the first global bond of its size in its corporate history. The global bond was issued to support EDC's funding needs, thereby enabling EDC to support more Canadian exporters and investors to do more business internationally and help grow Canada's export trade. Such bonds have the same risk profile as government bonds but pay a premium. Which of the following best describes these bonds? Income bond Agency bond