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Matching Exercise: Match the type of bond to its definition. a) The Catastrophe Bond: covers hurricanes and earthquakes in the U.S. b) A Warrant Bond:

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Matching Exercise: Match the type of bond to its definition. a) The Catastrophe Bond: covers hurricanes and earthquakes in the U.S. b) A Warrant Bond: An Income bond: c) d) A Convertible bond: (Click to select) allows the holder to force the issuer to buy back the bond at a stated price. can be swapped for a fixed number of shares of stock anytime before maturity at the holder's option. covers hurricanes and earthquakes in the U.S. gives the buyer of a bond the right to purchase shares of stock in the company at a fixed price. states that the bond's coupon payment depends on company income. e) A Put bond

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