Question
Define each of the following terms: a. Bond; Treasury bond; corporate bond; municipal bond; foreign bond b. Par value; maturity date; coupon payment; coupon interest
Define each of the following terms:
a. Bond; Treasury bond; corporate bond; municipal bond; foreign bond
b. Par value; maturity date; coupon payment; coupon interest rate
c. Floating-rate bond; zero coupon bond; original issue discount bond (OID)
d. Call provision; redeemable bond; sinking fund
e. Convertible bond; warrant; income bond; indexed bond (also called a purchasingpower bond)
f. Premium bond; discount bond
g. Current yield (on a bond); yield to maturity (YTM); yield to call (YTC)
h. Indentures; mortgage bond; debenture; subordinated debenture
i. Development bond; municipal bond insurance; junk bond; investment-grade bond
j. Real risk-free rate of interest, r ; nominal risk-free rate of interest, r RF k. Inflation premium (IP); default risk premium (DRP); liquidity; liquidity premium (LP)l. Interest rate risk; maturity risk premium (MRP); reinvestment rate risk m. Term structure of interest rates; yield curven. Normal yield curve; inverted (abnormal) yield curve
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