Match

Conceptually equal to effective rate times balance.

Promises made to bondholders and legal protection.

Present value of interest plus present value of principal.

Backed by a lien or asset.

Market rate higher than stated rate.

Face amount times stated rate.

May become stock.

No specific assets pledged.

Stated rate higher than market rate.

1. Bond price
2. discount
3. Bond indenture
4. Interest expense
5. Mortagage bond
6. Convertible bonds
7. Periodic cash payments
8. Premium
9. Debenture bonds