. Characteristics of bonds To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: A bond'I maturity date. 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. A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a 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: refers to its face value and the amount of money that the issuing entity borrows and promises to repay on the Bridge Bonds Series A Dated 7-15-2005 4.375% Due 7-15-2055 @100.00 What is the issuing date of this bond? 7-15-2055 7-15-2005 Bridge Bonds Series A Dated 7-15-2005 4.375% Due 7-15-2055 @100.00 "What is the issuing date of this bond? 7-15-2055 7-15-2005 If the price of the bond is initially discounted and offers no coupon payments, the bond is called a 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 bond. 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 ps ips ols roductory To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is essential. For example: A bond's maturity A bond is agreeme A bond c A bond's coupon payment price par value refers to its face value and the amount of money that the issuing entity borrows and promises to repay on the if it does not pay the interest or the principal in accordance with the terms of the indenture e or more of the issue's restrictive covenants. requires the issuer to retire a specified portion of the bond issue each year is called a allows a bondholder or preferred stockholder to convert their bond or preferred share, respectively, into a ory A bond's maturity date. A bond issuer is said to be in agreement or if it violates on A bond contract feature that i A bond's specified number or value of Suppose vou read an article refers to its face value and the amount of money that the issuing entity borrows and promises to r if it does not pay the interest or the principal in accordance with the terms of the inde he issue's restrictive covenants. default suer to retire a specified portion of the bond issue each year is called a liquidation ows a bondholder or preferred stockholder to convert their bond or preferred share, respect 5. bankruptcy 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 maturity date. 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. refers to its face value and the amount of money that the issuing entity borrows and promises to repay on the A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is called a allows a bondholder or preferred stockholder to convert their bond or prefe specified number or value of common shares. A bond's Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following infor Bridge Bonds Series A Dated 7-15-2005 4.375 % Due 7-15-2055 @100.00 sinking fund provision convertible provision call provision into a Attempts 2. Characteristics of bonds To be effective issuing and investing in bonds, knowledge of their terminology, characteristics, and features is es For example: A bond's Keep the Highest/5 Suppose yo maturity date. A bond issuer is said to be in if it does not pay the interest or the principal in accordance with agreement or if it violates one or more of the issue's restrictive covenants. A bond contract feature that requires the issuer to retire a specified portion of the bond issue each year is calles allows a bondholder or preferred stockholder to convert their bond or pa mon shares. A bond's specified refers to its face value and the amount of money that the issuing entity borro convertibility provision call provision call premium e Golden Gate Bridge and Highway District bonds. It includes the following int 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 The contract that describes the terms of a borrowing arrangement between a firm that sells a bon zero coupon investors who purchase the bonds is called the floating-rate bond.. 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 Grade It Now Save & Continue Continue without saving If the price of the bond is initially discounted and offers no coupon payments, the bond is called a The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchas called the debenture Issuers ca educe the outstanding balance of a bond issue by using a sinking fund account into which they deposit a specified money ead indenture erationalize the sinking fund provision of an indenture, Issuers can (1) purchase a portion of the debt in the oper call the bo ontain a call provision. trustee bond. 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 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 Grade It Now Save &