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

is generally $$1,000$ and represents the amount borrowed from the bond's first purc

A bond issuer is said to be in

if it does not pay the interest or the principal in accordance with the terms

agreement or if it violates one or more of the issue's restrictive covenants.

The contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors

is called

A bond's

$.$

gives the issuer the right to call, or redeem, a bond at specific times and under spec

Suppose you read an article about the Golden Gate Bridge and Highway District bonds. It includes the following information:

Bridge Bonds Series A Dated $7-15-20054\mathrm{.}375\%$ Due $7-15-2055$ @$100\mathrm{.}00$

What is the coupon interest rate of this bond?