Definition Securities that allow investors to swap the bond for shares in the firm's common equity. An investor wanting to buy or sell bonds at the prevailing market price will place this. A legally binding document specifying the rights and obligations of a bond issuing firm and investor. A provision that requires a firm to retire a specified amount of the bonds issued in an offering each year. Convertible bonds Sinking-fund provision Bond indenture O Market order O

\begin{tabular}{|c|c|c|c|c|} \hline Definition & Convertiblebonds & Sinking-fundprovision & Bondindenture & Marketorder \\ \hline Securitiesthatallowinvestorstoswapthebondforsharesinthefirmscommonequity. & 0 & & 0 & 0 \\ \hline Aninvestorwantingtobuyorsellbondsattheprevalingmanketpricewillplacethis. & 0 & 0 & (7) & 8 \\ \hline Alegallybindingdocumentspecifyingtherightsandobligationsofabondiswingfirmandinvestor. & Q & n & 0 & \\ \hline Aprovisionthatrequiresafirmtoretireaspecifiedamountofthebondsissuedinanoiferingeschyear. & 0 & 10 & a & D \\ \hline \end{tabular}