are contractual clauses in long- term debt agreements that place certain operating and financial constraints on the borrower. In a bond indenture, is the stipulation that subsequent creditors agree to wait until all claims of the senior debt are satisfied. For a risk manager, the required return increases for an increase in risk. The legal contract setting forth the terms and provisions of a corporate bond is ain) risk is the chance that changes in interest rates will adversely affect the value of an investment is a measure of relative dispersion used in comparing the risks of assets with differing expected return Deeply discounted bond that pays no coupon Interest is a The is the compound annual rate of interest eamed on a debt security purchased on a given date and held to maturity veldurve that reflects relatively lar borrowing costs potrestem and long-term loan is called as of interest eamed on a debt security purchased on a given date and held to maturity A yield curve that reflects relatively similar borrowing costs for both short-term and long-term loans is called as curve The feature permits the issuer to repurchase bonds at a stated price prior to maturity. Restrictive covenants Averse Subordination Standard deviation Sinking fund junk Conversion Zero coupon bond Yield to maturity Flat Inverted Seeker Beta Indenture PUT Interest rate Call Coefficient of variation